Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-11919 | ||
Entity Registrant Name | TTEC Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-1291044 | ||
Entity Address, Address Line One | 9197 South Peoria Street | ||
Entity Address, City or Town | Englewood | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80112 | ||
City Area Code | 303 | ||
Local Phone Number | 397-8100 | ||
Title of 12(b) Security | Common stock of TTEC Holdings, Inc., $0.01 par value per share | ||
Trading Symbol | TTEC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,899,274,388 | ||
Entity Common Stock, Shares Outstanding | 46,994,084 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Denver, Colorado | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001013880 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 158,205 | $ 132,914 |
Accounts receivable, net | 357,310 | 378,397 |
Prepaids and other current assets | 134,333 | 104,597 |
Income and other tax receivables | 48,139 | 40,894 |
Total current assets | 697,987 | 656,802 |
Long-term assets | ||
Property, plant and equipment, net | 168,404 | 178,706 |
Operating lease assets | 90,180 | 120,820 |
Goodwill | 739,481 | 363,502 |
Deferred tax assets, net | 11,130 | 15,081 |
Other intangible assets, net | 212,349 | 112,059 |
Other long-term assets | 77,273 | 69,438 |
Total long-term assets | 1,298,817 | 859,606 |
Total assets | 1,996,804 | 1,516,408 |
Current liabilities | ||
Accounts payable | 70,415 | 66,658 |
Accrued employee compensation and benefits | 156,324 | 163,658 |
Other accrued expenses | 63,369 | 55,915 |
Income taxes payable | 9,471 | 19,709 |
Deferred revenue | 95,608 | 39,956 |
Current operating lease liabilities | 44,460 | 43,651 |
Other current liabilities | 4,749 | 6,623 |
Total current liabilities | 444,396 | 396,170 |
Long-term liabilities | ||
Line of credit | 791,000 | 385,000 |
Deferred tax liabilities, net | 5,335 | 7,747 |
Non-current Income Taxes Payable | 17,486 | 22,291 |
Non-current operating lease liabilities | 64,419 | 98,277 |
Other long-term liabilities | 79,827 | 96,185 |
Total long-term liabilities | 958,067 | 609,500 |
Total liabilities | 1,402,463 | 1,005,670 |
Redeemable noncontrolling interest | 56,316 | 52,976 |
Stockholders' equity | ||
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of December 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 46,990,031 and 46,737,033 shares outstanding as of December 31, 2021 and December 31, 2020, respectively | 470 | 467 |
Additional paid-in capital | 361,135 | 360,293 |
Treasury stock at cost: 35,062,222 and 35,315,220 shares as of December 31, 2021 and December 31, 2020, respectively | (597,031) | (601,214) |
Accumulated other comprehensive income (loss) | (98,426) | (72,156) |
Retained earnings | 856,065 | 757,312 |
Noncontrolling interest | 15,812 | 13,060 |
Total stockholders' equity | 538,025 | 457,762 |
Total liabilities and stockholders' equity | $ 1,996,804 | $ 1,516,408 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders' equity | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 5,409 | $ 5,067 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 46,990,031 | 46,737,033 |
Treasury stock, shares | 35,062,222 | 35,315,220 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Comprehensive Income | |||
Revenue. | $ 2,273,062 | $ 1,949,248 | $ 1,643,704 |
Type of Revenue | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Operating expenses | |||
Cost of services (exclusive of depreciation and amortization presented separately below) | $ 1,704,109 | $ 1,452,719 | $ 1,242,887 |
Selling, general and administrative | 239,994 | 203,902 | 202,540 |
Depreciation and amortization | 96,706 | 78,862 | 69,086 |
Restructuring charges, net | 3,807 | 3,264 | 1,747 |
Impairment losses | 11,254 | 5,809 | 3,735 |
Total operating expenses | 2,055,870 | 1,744,556 | 1,519,995 |
Income from operations | 217,192 | 204,692 | 123,709 |
Other income (expense) | |||
Interest income | 761 | 1,656 | 1,913 |
Interest expense | (12,384) | (17,489) | (19,113) |
Other income (expense), net | 2,315 | (18,591) | 3,902 |
Total other income (expense) | (9,308) | (34,424) | (13,298) |
Income before income taxes | 207,884 | 170,268 | 110,411 |
Benefit from (provision for) income taxes | (49,695) | (40,937) | (25,677) |
Net income | 158,189 | 129,331 | 84,734 |
Net income attributable to noncontrolling interest | (17,219) | (10,683) | (7,570) |
Net income (loss) attributable to TTEC stockholders | 140,970 | 118,648 | 77,164 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (17,551) | 29,537 | 6,816 |
Derivative valuation, gross | (11,452) | 5,717 | 16,990 |
Derivative valuation, tax effect | 2,981 | (1,468) | (4,530) |
Other, net of tax | (391) | 488 | (786) |
Total other comprehensive income (loss) | (26,413) | 34,274 | 18,490 |
Total comprehensive income (loss) | 131,776 | 163,605 | 103,224 |
Less: Comprehensive income attributable to noncontrolling interest | (12,067) | (8,352) | (7,698) |
Comprehensive income (loss) attributable to TTEC stockholders | $ 119,709 | $ 155,253 | $ 95,526 |
Weighted average shares outstanding | |||
Basic | 46,890 | 46,647 | 46,373 |
Diluted | 47,386 | 46,993 | 46,758 |
Weighted Average Share Counts | |||
Basic | $ 3.01 | $ 2.54 | $ 1.66 |
Diluted | $ 2.97 | $ 2.52 | $ 1.65 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity and Mezzanine Equity - USD ($) $ in Thousands | Stockholders' Equity of the Company Common Stock [Member] | Stockholders' Equity of the Company Treasury Stock [Member] | Stockholders' Equity of the Company Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | Stockholders' Equity of the Company Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | Stockholders' Equity of the Company Retained Earnings [Member] | Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment | Total |
Common stock beginning balance, share at Dec. 31, 2018 | 46,195,000 | ||||||||
Beginning balance, value at Dec. 31, 2018 | $ 462 | $ (610,177) | $ 353,932 | $ (124,596) | $ 725,551 | $ 7,677 | $ 352,849 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 77,164 | 6,969 | 84,133 | ||||||
Dividends to shareholders | (28,739) | (28,739) | |||||||
Capital contribution from noncontrolling interest | 3,362 | 3,362 | |||||||
Dividends distributed to noncontrolling interest | (4,950) | (4,950) | |||||||
Foreign currency translation adjustments | 6,688 | 128 | 6,816 | ||||||
Derivatives valuation, net of tax | 12,460 | 12,460 | |||||||
Vesting of restricted stock units, share | 294,000 | ||||||||
Vesting of restricted stock units, value | $ 3 | 4,863 | (10,337) | (5,471) | |||||
Equity-based compensation expense | 12,814 | 12,814 | |||||||
Other, net of tax. | (786) | (786) | |||||||
Common stock ending balance, share at Dec. 31, 2019 | 46,489,000 | ||||||||
Ending balance, value at Dec. 31, 2019 | $ 465 | (605,314) | 356,409 | (106,234) | $ (758) | 773,218 | 13,186 | $ (758) | 431,730 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Temporary Equity, Net Income | 601 | ||||||||
Acquisition of noncontrolling interest | 48,322 | ||||||||
Temporary Equity, Ending Balance at Dec. 31, 2019 | 48,923 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 118,648 | 8,156 | 126,804 | ||||||
Dividends to shareholders | (134,554) | (134,554) | |||||||
Dividends distributed to noncontrolling interest | (8,478) | (8,478) | |||||||
Foreign currency translation adjustments | 29,341 | 196 | 29,537 | ||||||
Derivatives valuation, net of tax | 4,249 | 4,249 | |||||||
Vesting of restricted stock units, share | 248,000 | ||||||||
Vesting of restricted stock units, value | $ 2 | 4,100 | (8,623) | (4,521) | |||||
Equity-based compensation expense | 12,507 | 12,507 | |||||||
Other, net of tax. | 488 | $ 488 | |||||||
Preferred stock ending balance, share at Dec. 31, 2020 | 0 | ||||||||
Common stock ending balance, share at Dec. 31, 2020 | 46,737,000 | 46,737,033 | |||||||
Ending balance, value at Dec. 31, 2020 | $ 467 | (601,214) | 360,293 | (72,156) | 757,312 | 13,060 | $ 457,762 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Temporary Equity, Net Income | 2,527 | ||||||||
Acquisition of noncontrolling interest | 3,849 | ||||||||
Temporary equity distributions. | (2,323) | ||||||||
Temporary Equity, Ending Balance at Dec. 31, 2020 | 52,976 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 140,970 | 12,210 | 153,180 | ||||||
Dividends to shareholders | (42,217) | (42,217) | |||||||
Dividends distributed to noncontrolling interest | (9,315) | (9,315) | |||||||
Foreign currency translation adjustments | (17,408) | (143) | (17,551) | ||||||
Derivatives valuation, net of tax | (8,471) | (8,471) | |||||||
Vesting of restricted stock units, share | 253,000 | ||||||||
Vesting of restricted stock units, value | $ 3 | 4,183 | (15,583) | (11,397) | |||||
Equity-based compensation expense | 16,425 | 16,425 | |||||||
Other, net of tax. | (391) | $ (391) | |||||||
Preferred stock ending balance, share at Dec. 31, 2021 | 0 | ||||||||
Common stock ending balance, share at Dec. 31, 2021 | 46,990,000 | 46,990,031 | |||||||
Ending balance, value at Dec. 31, 2021 | $ 470 | $ (597,031) | $ 361,135 | $ (98,426) | $ 856,065 | $ 15,812 | $ 538,025 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Temporary Equity, Net Income | 5,009 | ||||||||
Temporary equity distributions. | (1,669) | ||||||||
Temporary Equity, Ending Balance at Dec. 31, 2021 | $ 56,316 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statement of stockholders' equity and mezzanine equity [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.90 | $ 2.88 | $ 0.62 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 158,189 | $ 129,331 | $ 84,734 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 96,706 | 78,862 | 69,086 |
Amortization of contract acquisition costs | 983 | 590 | 1,002 |
Amortization of debt issuance costs | 1,016 | 732 | 1,083 |
Imputed interest expense and fair value adjustments to contingent consideration | 1,168 | 4,484 | 2,339 |
Provision for credit losses | (350) | 494 | 1,711 |
(Gain) loss on disposal of assets | 1,127 | 521 | 189 |
Loss on dissolution of subsidiary | 0 | 19,905 | 0 |
Impairment losses | 11,254 | 5,809 | 3,735 |
Deferred income taxes | 831 | (5,193) | (1,376) |
Excess tax benefit from equity-based awards | (5,301) | (726) | (1,231) |
Equity-based compensation expense | 16,425 | 12,507 | 12,814 |
(Gain) loss on foreign currency derivatives | (213) | 103 | (140) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 40,156 | (40,625) | 29,608 |
Prepaids and other assets | 18,407 | 57,597 | 27,413 |
Accounts payable and accrued expenses | (17,209) | 76,726 | 97,268 |
Deferred revenue and other liabilities | (71,893) | (69,197) | (90,246) |
Net cash provided by operating activities | 251,296 | 271,920 | 237,989 |
Cash flows from investing activities | |||
Proceeds from sale of long-live assets | 93 | 20 | 382 |
Purchases of property, plant and equipment | (60,358) | (59,772) | (60,776) |
Acquisitions, net of cash acquired of $18,638, $4,423 and $4,547, respectively | (481,718) | (52,675) | (102,457) |
Net cash used in investing activities | (541,983) | (112,427) | (162,851) |
Cash flows from financing activities | |||
Net proceeds (borrowings) from line of credit | 406,000 | 95,000 | 8,000 |
Payments on other debt | (6,626) | (8,619) | (11,855) |
Payments of contingent consideration and hold back payments to acquisitions | (11,517) | (48,686) | (5,902) |
Dividends paid to shareholders | (42,217) | (134,554) | (28,739) |
Payments to noncontrolling interest | (10,984) | (10,801) | (4,950) |
Capital contribution from noncontrolling interest | 0 | 0 | 3,362 |
Tax payments related to issuance of restricted stock units | (11,397) | (4,521) | (5,471) |
Payments of debt issuance costs | (3,614) | (45) | (1,819) |
Net cash (used in) provided by financing activities | 319,645 | (112,226) | (47,374) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7,291) | 6,157 | (410) |
Increase (decrease) in cash, cash equivalents and restricted cash | 21,667 | 53,424 | 27,354 |
Cash, cash equivalents and restricted cash, beginning of period | 159,015 | 105,591 | 78,237 |
Cash, cash equivalents and restricted cash, end of period | 180,682 | 159,015 | 105,591 |
Supplemental disclosures | |||
Cash paid for interest | 11,188 | 10,233 | 13,108 |
Cash paid for income taxes | 71,392 | 47,761 | 36,316 |
Non-cash investing and financing activities | |||
Acquisition of long lived assets through finance leases | 912 | 1,852 | 3,731 |
Acquisition of equipment through increase in accounts payable, net | $ (2,243) | $ 347 | $ 881 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from investing activities | |||
Cash acquired from acquisition | $ 18,638 | $ 4,423 | $ 4,547 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | (1) OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview TTEC Holdings, Inc. (“TTEC”, “the Company”; pronounced “T-TEC”) is a leading global customer experience as a service (“CXaaS”) partner for many of the world’s most iconic and disruptive brands. TTEC designs, builds, orchestrates, and delivers seamless digitally enabled customer experiences that are designed to increase brand value, customer loyalty, revenue and profitability through personalized, outcome-based interactions. The Company helps clients improve their customer satisfaction while lowering their total cost to service by combining innovative digital solutions with service capabilities that deliver a frictionless customer experience (“CX”) across different channels and phases of the customer lifecycle. TTEC’s 65,000 employees serve clients in the automotive, communication, financial services, national/federal and state and local governments, healthcare, logistics, media and entertainment, e-tail/retail, technology, travel and transportation industries via operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, Singapore, South Africa, Thailand, and the United Kingdom. The Company operates and reports its financial results of operation through two business segments: TTEC Digital and TTEC Engage. ● TTEC Digita l is one of the largest pure-play CX technology service providers with expertise in CX strategy, digital consulting, and transformation enabled by proprietary CX applications and technology partnerships. TTEC Digital designs, builds, and operates robust digital experiences for clients and their customers through the contextual integration and orchestration of customer relationship management (“CRM”), data, analytics, CXaaS technology, and intelligent automation to ensure high-quality, scalable CX outcomes. ● TTEC Engage provides the digitally enabled CX managed services to support our clients’ end-to-end customer interaction delivery at scale. The segment delivers omnichannel customer care, tech support, order fulfillment, customer acquisition, growth, and retention services with industry specialization and distinctive CX capabilities for hypergrowth brands. TTEC Engage also delivers digitally enabled back office and industry specific specialty services including artificial intelligence (“AI”) operations, content moderation, and fraud management services. TTEC Digital and TTEC Engage strategically come together under our unified offering, Humanify ® ® Basis of Presentation The Consolidated Financial Statements are comprised of the accounts of TTEC, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 70% equity owned subsidiary First Call Resolution, LLC and its 70% equity owned subsidiary Serendebyte, Inc. (see Note 2). All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions. Fair Value of Financial Instruments Fair values of cash equivalents, accounts receivable, accounts payable and debt approximate the carrying amounts because of their short-term nature. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, primarily held in interest-bearing investments, and liquid short-term investments, which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The Company manages a centralized global treasury function in the United States with a focus on safeguarding and optimizing the use of its global cash and cash equivalents. The Company’s cash is held in the U.S. in U.S. dollars and outside of the U.S. in U.S. dollars and foreign currencies. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and utilization of diversified bank deposit accounts and high quality investments. However, the Company can provide no assurances that it will not sustain losses. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Cash and cash equivalents $ 158,205 $ 132,914 $ 82,407 Restricted cash included in "Prepaid and other current assets" 22,477 26,101 23,172 Restricted cash included in "Other noncurrent assets" — — 12 Total $ 180,682 $ 159,015 $ 105,591 Accounts Receivable At the end of each quarter an allowance for credit losses will be calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the income statement. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible. Derivatives The Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. The Company also enters into interest rate derivatives which consist of interest rate swaps to reduce the Company’s exposure to interest rate fluctuations associated with its variable rate debt. Upon proper qualification, these contracts are designated as cash flow hedges. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities. All derivative financial instruments are reported at fair value and recorded in Prepaids and other current assets, Other long-term assets, Other current liabilities, and Other long-term liabilities in the accompanying Consolidated Balance Sheets as applicable for each period end. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders’ Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company’s cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue. Any realized gains or losses from the interest rate swaps are recognized in Interest expense. Gains and losses from the settlements of the Company’s net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment. The Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: Building 30 years Computer equipment and software 3 to 7 years Telephone equipment 4 to 7 years Furniture and fixtures 5 years Leasehold improvements Lesser of economic useful life (typically 10 years) or original lease term Other 3 to 7 years The Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows. Software Development Costs The Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over the estimated useful life equal to the lesser of the license term or 4 or 7 years depending on the software type. Previously, the expense related to these assets has been classified as amortization expense within the income statement. Based on the new guidance adopted as of January 1, 2020, the amortization of any assets that are classified as cloud computing arrangements will be expensed and included in operating expenses within the income statement. The expense for the portion of the internally developed software incurred prior to January 1, 2020 and any assets that are not related to a cloud computing arrangement, will remain in amortization expense on a go-forward basis, as the Company adopted the new standard on a prospective basis. Goodwill The Company evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses a two-step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value. Other Intangible Assets The Company has other intangible assets that include customer relationships (definite-lived), trade names (definite-lived) and non-compete agreements (definite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 1 to 12 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A definite-lived intangible asset is considered to be impaired when the forecasted undiscounted cash flows of its asset group are estimated to be less than its carrying value. The Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Similar to goodwill, the Company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets. The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset. If a quantitative analysis is completed, an indefinite-lived intangible asset (i.e. trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that a market participant would pay for use of that trade name. An impairment charge is recorded if the intangible asset’s carrying value exceeds its estimated fair value. Restructuring Liabilities The Company routinely assesses the profitability and utilization of its customer engagement centers and existing markets. In some cases, the Company has chosen to close under-performing customer engagement centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company’s postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan. Income Taxes Accounting for income taxes requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards. The Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income (Loss). No significant changes in indefinite reinvestment assertion were made during 2021. The Company has completed its analysis in regard to the full tax impact related to prior changes in indefinite reinvestment reassertion and any related taxes have been recorded. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions. No additional income taxes have been provided for any remaining outside basis difference inherent in our foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which we operate. Revenue Recognition The Company recognizes revenue from contracts and programs when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Performance obligation is the unit of accounting for revenue recognition under the provisions of ASC Topic 606, “Revenue from Contracts with Customers” and all related amendments (“ASC 606”). A contract’s transaction price is allocated to each distinct performance obligation in recognizing revenue. The Business Process Outsourcing (“BPO”) inbound and outbound service fees are based on either a per minute, per hour, per FTE, per transaction or per call basis, which represents the majority of our contracts. These contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For example, services for the training of the Company’s agents (which are separately billable to the customer) are a separate promise in the BPO contracts, but they are not distinct from the primary service obligations to transfer services to the customers. The performance of the customer service by the agents is highly dependent on the initial, growth, and seasonal training services provided to the agents during the life of a program. The training itself is not considered to have value to the customer on a standalone basis, and therefore, training on a standalone basis cannot be considered a separate unit of accounting. The Company therefore defers revenue from certain training services that are rendered mainly upon commencement of a new client contract or program, including seasonal programs. Revenue is also deferred when there is significant growth training in an existing program. Accordingly, recognition of initial, growth, and seasonal training revenues and associated costs (consisting primarily of labor and related expenses) are deferred and amortized over the period of economic benefit. With the exception of training which is typically billed upfront and deferred, the remainder of revenue is invoiced on a monthly or quarterly basis as services are performed and does not create a contract asset or liability. In addition to revenue from BPO services, revenue also consists of fees from services for program launch, professional consulting, fully-hosted or managed technology and learning innovation services. The contracts containing these service offerings may contain multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The Company forecasts its expected cost based on historical data, current prevailing wages, other direct and indirect costs incurred in recently completed contracts, market conditions, and other client specific cost considerations. For these services, the point at which the transfer of control occurs determines when revenue is recognized in a specific reporting period. Within our Digital segment, where there are product sales, the attribution of revenue is recognized when the transfer of control is completed and the products are delivered to the client’s location. Where services are rendered to a customer, the attribution is aligned with the progress of work and is recognized over time (i.e. based on measuring the progress toward complete satisfaction of a performance obligation using an output method or an input method). Where output method is used, revenue is recognized on the basis of direct measurements of the value to the customer of the goods or services transferred relative to the remaining goods or services promised under the contract. The majority of the Company’s services are recognized over time using the input method in which revenue is recognized on the basis of efforts or inputs toward satisfying a performance obligation (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to satisfy the performance obligation. The measures used provide faithful depiction of the transfer of goods or services to the customers. For example, revenue is recognized on certain consulting contracts based on labor hours expended as a measurement of progress where the consulting work involves input of consultants’ time. The progress is measured based on the hours expended over total number of estimated hours included in the contract multiplied by the total contract consideration. The contract consideration can be a fixed price or an hourly rate, and in either case, the use of labor hours expended as an input measure provides a faithful depiction of the transfer of services to the customers. Deferred revenues for these services represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from i) receipt of license fees that are deferred due to one or more of the revenue recognition criteria not being met, and ii) the billing of annual customer support agreements, annual managed service agreements, and billings for other professional services that have not yet been performed by the Company. The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in either Deferred revenue or Other long-term liabilities, as applicable, in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services. Costs directly associated with revenue deferred, consisting primarily of labor and related expenses, are also deferred and recognized in proportion to the expected future revenue from the contract. Variable consideration exists in contracts for certain client programs that provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based conditions. Variable consideration is estimated at contract inception at its most likely value and updated at the end of each reporting period as additional performance data becomes available. Revenue related to such variable consideration is recognized only to the extent that a significant reversal of any incremental revenue is not considered probable. Contract modifications are routine in the performance of the customer contracts. Contracts are often modified to account for customer mandated changes in the contract specifications or requirements, including service level changes. In most instances, contract modifications relate to goods or services that are incremental and distinctly identifiable, and, therefore, are accounted for prospectively. Incremental Costs to Obtain a Contract Direct and incremental costs to obtain or fulfill a contract are capitalized, and the capitalized costs are amortized over the corresponding period of benefit, determined on a contract by contract basis. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a customer contract that it would not have incurred if the contract had not been obtained. Contract acquisition costs consist primarily of payment of commissions to sales personnel and are incurred when customer contracts are signed. The deferred sales commission amounts are amortized based on the expected period of economic benefit and are classified as current or non-current based on the timing of when they are expected to be recognized as an expense. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained. Sales commissions are paid for obtaining new clients only and are not paid for contract renewals or contract modifications. Capitalized costs of obtaining contracts are periodically reviewed for impairment. As of December 31, 2021, the Company has a deferred asset of $6.4 million related to sales commissions. In certain cases, the Company negotiates an upfront payment to a customer in conjunction with the execution of a contract. Such upfront payments are critical to acquisition of new business and are often used as an incentive to negotiate favorable rates from the clients and are accounted for as upfront discounts for future services. Such payments are either made in cash at the time of execution of a contract or are netted against the Company’s service invoices. Payments to customers are capitalized as contract acquisition costs and are amortized in proportion to the expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. Such payments are considered a reduction of the selling prices of the Company’s products or services, and therefore, are accounted for as a reduction of revenue when amortized. Such capitalized contract acquisition costs are periodically reviewed for impairment taking into consideration ongoing future cash flows expected from the contract and estimated remaining useful life of the contract. Practical Expedients and Exemptions Some of the Company’s service contracts are short-term in nature with a contract term of one one Lease Expense The Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of lease payments over the initial term of its operating leases. The initial term could include the “build-out” period of leases, where no lease payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to lease expense over the lease term. The landlord/tenant incentives are recorded as a reduction to the right of use asset and depreciated on a straight line basis over the remaining lease term once the assets are placed in service. Equity-Based Compensation Expense Equity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards. Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within Stockholders’ Equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases”, along with subsequent amendments, which amended the existing standards for lease accounting. The Company adopted ASU 2016-02 as of January 1, 2019 using the modified retrospective method. In January 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” (ASC 326), which amends the methodology of how and when companies measure credit losses on financial instruments. The objective of the ASU is to provide financial statement users more useful information regarding expected credit losses on financial instruments and other commitments. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarifies the scope of guidance in ASU 2016-13. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments – Credit Losses (Topic 326), Targeted Transition Relief”, which amended the transition guidance for the new credit losses standard. The ASU is effective for interim and annual periods beginning on or after December 15, 2019 with early adoption permitted, using a modified retrospective approach. The Company adopted the new guidance effective January 1, 2020 and the adoption did not have a material effect on the financial statements. See Note 4 for additional disclosures. In August 2018, the FASB issued ASU 2018-15 “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“CCA”), which aligns the accounting for the costs of implementing CCA’s with the requirements for capitalizing implementation costs incurred to develop or obtain hosting arrangement. The ASU is effective for interim and annual periods beginning on or after December 15, 2019, using a prospective or retrospective transition approach. The Company adopted the new guidance effective January 1, 2020 using the prospective approach and the adoption did not have a material effect on the financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” (ASU 740), which is intended to simplify various aspects related to income tax accounting. The |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
ACQUISITIONS [ABSTRACT] | |
ACQUISITIONS | (2) ACQUISITIONS Faneuil On December 21, 2021, TTEC Government Solutions LLC, a TTEC Holdings, Inc.’s subsidiary, entered into an agreement with Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc., pursuant to which and subject to the satisfaction of certain closing conditions, TTEC Government Solutions LLC will acquire certain public sector citizen experience contracts in the transportation infrastructure and healthcare exchange industries from Faneuil for cash consideration of $140.0 million plus certain future contingent payments, and customary adjustments; and subject to customary indemnification for representations and warranties of the sellers about the state of the business. In addition, Faneuil agreed to grant to TTEC Government Solutions LLC a three-year call right and a right of first offer to purchase certain other assets of Faneuil in its utilities, commercial healthcare, proprietary technology, and certain other verticals. Transaction closing is contingent on (1) the satisfactory completion of Hard-Scott-Rodino competition review by the U.S. Federal Trade Commission, which was accomplished at the end of January 2021; (2) the receipt of consents to assignment of contracts which is on-going; and (3) the completion of customary transition services agreements between TTEC and Faneuil to support the transition. Based on the currently available information, parties anticipate that the transaction will close in the first quarter of 2022. Avtex On April 8, 2021, the Company acquired, through its subsidiary TTEC Digital, LLC, 100% of the outstanding stock of Avtex Solutions Holdings, LLC (“Avtex”). Avtex is an end-to-end customer experience and CXaaS solutions provider with offerings in Genesys and Microsoft cloud solutions. The business is operated as part of the TTEC Digital segment and is being fully consolidated into the financial statements of TTEC. Total cash paid at acquisition was $499.946 million ($490.0 million base purchase price plus cash, less debt and working capital estimate). The Avtex transaction is subject to customary representations and warranties, holdbacks, and a net working capital adjustment. The Company used cash from operations and drew down on its Credit Facility to fund the acquisition. The Company finalized the net working capital adjustment for $0.1 million during the third quarter of 2021 which was paid by Avtex to the Company in the third quarter of 2021. During the fourth quarter of 2021, TTEC implemented ASU 2021-08 which required an accounting modification to the deferred revenue balance as of the acquisition date (see discussion above in Note 1). The deferred revenue balance was evaluated as if TTEC had been the company securing the initial contract and accounted for these contracts in accordance with ASC 606. Based on this re-assessment, the $4.9 million reduction initially recorded to deferred revenue in connection with the purchase price accounting was eliminated and an offsetting increase to Goodwill was recorded as of the acquisition date. In connection with this modification, revenue of $3.4 million was recorded in the fourth quarter of 2021 related to deferred revenue from the second and third quarters of 2021. A multi-period excess earnings method under the income approach was used to estimate the fair value of the customer relationships intangible asset. The significant assumptions utilized in calculating the fair value of the customer relationships intangible asset were the customer attrition rate, revenue growth rates, forecasted EBITDA, contributory asset charge, and the discount rate. The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Preliminary Estimate of Acquisition Date Fair Value Cash $ 18,638 Accounts receivable, net 22,214 Prepaid expenses 26,389 Current income tax receivables 93 Net fixed assets 3,162 Right of use assets 3,614 Other Assets 480 Tradename 5,300 Intellectual property intangible 770 Customer relationships 128,200 Goodwill 378,882 $ 587,742 Accounts payable $ 20,580 Accrued employee compensation 4,325 Accrued expenses 250 Right of use liability - current 678 Deferred revenue 56,765 Accrued income taxes 332 Deferred tax liability 1,930 Right of use liability - noncurrent 2,936 $ 87,796 Total purchase price $ 499,946 The estimates of fair value of identifiable assets acquired and liabilities assumed are preliminary, pending finalization of the valuation and tax returns, thus are subject to revisions that may result in adjustments to the value presented above. The Avtex customer relationships, intellectual property intangible, and tradename have been estimated based on the initial valuation and will be amortized over estimated useful lives of 9, 3, and 1 years, respectively. The goodwill recognized from the Avtex acquisition is estimated to be attributable, but not limited to, the acquired workforce and expected synergies with the TTEC Digital segment. The tax basis of the acquired intangibles and goodwill will be materially deductible for income tax purposes. The acquired goodwill and intangibles and operating results of Avtex are reported within the TTEC Digital segment from the date of acquisition. VoiceFoundry US On August 5, 2020, TTEC Digital, LLC, closed the first phase of the acquisition of the VoiceFoundry business by acquiring 100% of the business’s net assets in the U.S. and U.K., (the “VF US Transaction”). VoiceFoundry is a preferred Amazon Connect cloud contact center service and implementation partner. The business has been integrated into the TTEC Digital segment and is being fully consolidated into the financial statements of TTEC. Total cash paid at acquisition was $34.3 million. The VF US Transaction is subject to customary representations and warranties, holdbacks, and working capital adjustments. The VF US Transaction includes two contingent payments over the next two years with each payment having a maximum value of $7.4 million based on VF US’s EBITDA performance for 2020 and 2021. The Company finalized the net working capital adjustment for $0.3 million which was paid to VoiceFoundry during the first quarter of 2021. The fair value of the contingent consideration has been estimated using a Monte Carlo model. The model was based on current expected EBITDA performance, a discount rate of 23.1%, a volatility rate of 47%, and an adjusted risk-free rate of 2.6%. Based on the model, a $10.9 million expected future payment was calculated and recorded as of the acquisition date. During the fourth quarter of 2020, the first quarter of 2021, the second quarter of 2021 and the fourth quarter of 2021, a $3.2 million expense, a $0.5 million expense, a $0.2 million expense, and a $25 thousand expense, respectively, were recorded related to a fair value adjustment of the estimated contingent consideration based on revised estimates of EBITDA performance for 2021. The expense was included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the first quarter of 2021, the contingent payment related to 2020 was finalized at a value of $7.4 million and was paid in April 2021. During the first quarter of 2022, the contingent payment related to 2021 was finalized at a value of $7.4 million and will be paid in April 2022. As of December 31, 2021, the value of the accrual is $7.4 million and is included in Other accrued expenses in the accompanying Consolidated Balance Sheets. A multi-period excess earnings method under the income approach was used to estimate the fair value of the customer relationships intangible asset. The significant assumption utilized in calculating the fair value of the customer relationships intangible asset was the customer attrition rate. The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Accounts receivable, net $ 3,758 Prepaid and other expenses 345 Tradename 400 Non-compete 150 Customer relationships 6,550 Goodwill 35,881 $ 47,084 Accounts payable $ 289 Accrued employee compensation 741 Deferred revenue 170 $ 1,200 Total purchase price $ 45,884 In the first quarter of 2021, the Company finalized the valuation of VF US for the acquisition date assets acquired and liabilities assumed and determined that no material adjustments to any of the balances were required. The VF US customer relationships and tradename are being amortized over useful lives of 4 and 2 years, respectively. The goodwill recognized from the VF US acquisition is attributable, but not limited to, the acquired workforce and expected synergies with TTEC Digital segment. The tax basis of the acquired intangibles and goodwill will be deductible for income tax purposes. The acquired goodwill and intangibles and operating results of VF US are reported within the TTEC Digital segment from the date of acquisition. VoiceFoundry ASEAN On November 4, 2020, TTEC Europe BV, a subsidiary of the Company, closed the final phase of the acquisition of the VoiceFoundry business by acquiring 100% of the issued stock of Saasy Ventures Pty Ltd. (“Saasy”, “VF ASEAN”). The business has been integrated into the TTEC Digital segment and is being fully consolidated into the financial statements of TTEC. Total cash paid at acquisition was $15.2 million. The VF ASEAN Transaction is subject to customary representations and warranties, holdbacks, and working capital adjustments. The VF ASEAN Transaction includes two contingent payments over the next two years with each payment having a maximum value of $2.2 million based on VF ASEAN’s EBITDA performance for 2020 and 2021. The Company finalized the net working capital adjustment for $0.2 million which was paid from VoiceFoundry during the third quarter of 2021. The fair value of the contingent consideration has been estimated using a Monte Carlo model. The model was based on current expected EBITDA performance, a discount rate of 18.4%, a volatility rate of 50%, and an adjusted risk-free rate of 1.6%. Based on the model, a $2.8 million expected future payment was calculated and recorded as of the acquisition date. During the fourth quarter of 2020, the first quarter of 2021, the second quarter of 2021 and the fourth quarter of 2021, a $1.2 million expense, a $0.4 million expense, a $0.1 million benefit and a $0.1 million expense, respectively, were recorded related to fair value adjustments of the estimated contingent consideration based on estimates of EBITDA performance for 2020 and 2021. These expenses/benefits were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the first quarter of 2021, the contingent payment related to 2020 was finalized at a value of $2.2 million and was paid in April 2021. During the first quarter of 2022, the contingent payment related to 2021 was finalized at a value of $2.2 million and will be paid in April 2022. As of December 31, 2021, the value of the accrual is $2.2 million and is included in Other accrued expenses in the accompanying Consolidated Balance Sheets. A multi-period excess earnings method under the income approach was used to estimate the fair value of the customer relationships intangible asset. The significant assumption utilized in calculating the fair value of the customer relationships intangible asset was the customer attrition rate. The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 1,300 Accounts receivable, net 937 Prepaid and other expenses 115 Income tax receivable 30 Property, plant and equipment 274 Tradename 300 Customer relationships 3,100 Goodwill 14,418 $ 20,474 Accounts payable $ 960 Accrued employee compensation 113 Deferred revenue 236 Deferred tax liability 1,013 Other accrued liabilities (78) $ 2,244 Total purchase price $ 18,230 In the second quarter of 2021, the Company finalized the valuation for VF ASEAN for the acquisition date assets acquired and liabilities assumed and determined that no material adjustments to any of the balances were required. The VF ASEAN customer relationships and tradename are being amortized over useful lives of 4 and 2 years, respectively. The goodwill recognized from the VF ASEAN Transaction is attributable, but not limited to, the acquired workforce and expected synergies with TTEC Digital segment. The tax basis of the acquired intangibles and goodwill will be not deductible for income tax purposes. The acquired goodwill and intangibles and operating results of VF ASEAN are reported within the TTEC Digital segment from the date of acquisition. Serendebyte On February 7, 2020, the Company acquired, through its subsidiary TTEC Digital LLC, 70% of the outstanding shares of capital stock of Serendebyte Inc., a Delaware corporation (“the Serendebyte Transaction”). Serendebyte is an autonomous customer experience and intelligent automation solutions provider based in India, the United States, and Canada. The business has been integrated into the TTEC Digital segment and is being fully consolidated into the financial statements of TTEC. Total cash paid at acquisition, for 70% of the outstanding shares of capital stock, was $9.0 million. The Serendebyte Transaction is subject to customary representations and warranties, holdbacks, and a net working capital adjustment. The Company finalized the net working capital adjustment for $0.8 million during the second quarter of 2020 which was paid by Serendebyte to the Company in the second quarter of 2020. As of the closing of the Serendebyte Transaction, Serendebyte’s founder and certain members of its management continued to hold the remaining 30% interest in Serendebyte, Inc. (“Remaining Interest”). Between January 31, 2023 and December 31, 2023, Serendebyte’s founder and the management team shall have an option to sell to TTEC Digital LLC and TTEC Digital LLC shall have an option to purchase the Remaining Interest at a purchase price equal to a multiple of Serendebyte’s adjusted trailing twelve month EBITDA for this particular acquisition. The noncontrolling interest was recorded at fair value on the date of acquisition. The fair value was based on significant inputs not observable in the market (Level 3 inputs) including forecasted earnings, discount rate of 35%, working capital requirements and applicable tax rates. The noncontrolling interest was valued at $3.8 million at the acquisition date and is shown as Redeemable noncontrolling interest in the accompanying Consolidated Balance Sheets. The Company recognizes changes in the redemption value of the Redeemable noncontrolling interest immediately as they occur but does not reduce the carrying value below the carrying value determined in accordance with ASC 810 (that amount being determined based on the allocation of income or loss to the noncontrolling interest as adjusted for distributions). At each subsequent reporting date, the current redeemable value is calculated and, if necessary, an adjustment is recorded to increase or decrease the noncontrolling interest account to reflect the appropriate balance, with the corresponding adjustment to retained earnings. As of December 31, 2021, no adjustments have been recorded related to changes in the estimated redemption value. As a condition to closing, Serendebyte’s founder and certain members of the management team agreed to continue their affiliation with Serendebyte at least through 2023, and the founder agreed not to compete with TTEC for a period of four years after the disposition of the Remaining Interest. The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 3,123 Accounts receivable, net 1,243 Prepaid and other expenses 1,327 Property, plant and equipment 20 Deferred tax assets 14 Tradename 400 Customer relationships 1,920 Goodwill 9,033 $ 17,080 Accounts payable $ 120 Accrued employee compensation and benefits 1,025 Accrued income taxes 170 Accrued expenses 2,208 Deferred tax liabilities - long-term 629 $ 4,152 Total purchase price $ 12,928 In the fourth quarter of 2020, the Company finalized the valuation of Serendebyte for the acquisition date assets acquired and liabilities assumed and determined no material adjustments to any of the balances were required. At the date of the purchase, an additional $2.2 million of cash was retained in the entity that was withdrawn by the holders of the Remaining Interest during the second quarter of 2020. The Serendebyte customer relationships and tradename are being amortized over useful lives of 5 and 3 years, respectively. The goodwill recognized from the Serendebyte acquisition is attributable, but not limited to, the acquired workforce and expected synergies with TTEC Digital segment. The tax basis of the acquired intangibles and goodwill will not be deductible for income tax purposes. The acquired goodwill and intangibles and operating results of Serendebyte are reported within the TTEC Digital segment from the date of acquisition. First Call Resolution On October 26, 2019, the Company acquired, through its subsidiary TTEC Services Corporation (“TSC”), 70% of the outstanding membership interest in First Call Resolution, LLC (“FCR”), an Oregon limited liability company (“the FCR Transaction”). FCR is a customer care, social networking and business process solutions service provider with approximately 2,000 employees based in the U.S. The business has been integrated into the Engage segment and is being fully consolidated into the financial statements of TTEC. Total cash paid at acquisition was $107.0 million, inclusive of $4.5 million related to cash balances, for the 70% membership interest in FCR. The FCR Transaction was subject to customary representations and warranties, holdbacks, and a net working capital adjustment. The FCR Transaction included a potential contingent payment with a maximum value of $10.9 million based on FCR’s 2020 EBITDA performance. The Company finalized the working capital adjustment for $0.7 million during the first quarter of 2020 which was paid by FCR to TSC in March 2020. As of the closing of the FCR Transaction, Ortana Holdings, LLC, an Oregon limited liability company (“Ortana”), owned by the FCR founders, will continue to hold the remaining 30% membership interest in FCR (“Remaining Interest”). Between January 31, 2023 and December 31, 2023, Ortana shall have an option to sell to TSC and TSC shall have an option to purchase from Ortana the Remaining Interest at a purchase price equal to a multiple of FCR’s adjusted trailing twelve month EBITDA for this particular acquisition and not to compete with the Company for a period of four years after the disposition of the Remaining Interest. The noncontrolling interest was recorded at fair value on the date of acquisition. The fair value was based on significant inputs not observable in the market (Level 3 inputs) including forecasted earnings, discount rate of 19.6%, working capital requirements and applicable tax rates. The noncontrolling interest was valued at $48.3 million on the acquisition date and is shown as Redeemable noncontrolling interest in the accompanying Consolidated Balance Sheets. The Company recognizes changes in the redemption value of the Redeemable noncontrolling interest immediately as they occur but does not reduce the carrying value below the carrying value determined in accordance with ASC 810 (that amount being determined based on the allocation of income or loss to the noncontrolling interest as adjusted for distributions). At each subsequent reporting date, the current redeemable value is calculated and, if necessary, an adjustment is recorded to increase or decrease the noncontrolling interest account to reflect the appropriate balance, with the corresponding adjustment to retained earnings. As of December 31, 2021, no adjustments have been recorded related to changes in the estimated redemption value. The fair value of the contingent consideration has been measured based on significant inputs not observable in the market (Level 3 inputs). Significant assumptions include a discount rate of 16.7% expected forecast volatility of 20%, an equivalent metric risk premium of 15.1%, risk-free rate of 1.6% and a credit spread of 1.8%. Based on these, a $6.5 million expected future payment was calculated. As of the acquisition date, the present value of the contingent consideration was $6.1 million. During the first, second and fourth quarters of 2020, $3.3 million, $1.1 million and $1.8 million of net benefits, respectively, were recorded related to fair value adjustment of the estimated contingent consideration based on revised actuals and estimates of EBITDA performance for 2020. The benefits were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2021, the final value of the contingent consideration was calculated at zero based on actual performance for 2020. The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 5,225 Accounts receivable, net 10,659 Prepaid expenses 357 Property and equipment 6,006 Other assets 224 Operating lease assets 5,127 Tradename 8,600 Customer relationships 38,540 Goodwill 96,739 $ 171,477 Accounts payable $ 388 Operating lease liability - short-term 1,160 Accrued employee compensation and benefits 4,049 Accrued expenses 72 Operating lease liability - long-term 3,967 $ 9,636 Total purchase price $ 161,841 In the first quarter of 2020, the Company finalized its valuation of FCR for the acquisition date assets acquired and liabilities assumed and determined that no material adjustments to any of the balances were required. As part of the purchase, an additional net $0.7 million of cash was retained in the entity to pay for certain Ortana liabilities that had been recorded prior to the acquisition. The FCR customer relationships and tradename are being amortized over a useful life of 10 and 4 years, respectively. The goodwill recognized from the FCR acquisition is attributable, but not limited to, the acquired workforce and expected synergies with Engage. The tax basis of the acquired intangibles and goodwill will be deductible for income tax purposes. The acquired goodwill and intangibles and operating results of FCR are reported within the Engage segment from the date of acquisition. Financial Impact of Acquired Businesses The acquired businesses purchased in 2021, 2020 and 2019 noted above contributed revenues of $147.7 million, $19.4 million and $18.6 million, and a net income of $9.8 million, $1.9 million and $1.4 million, to the Company in the respective year in which they were acquired for the years ended December 31, 2021, 2020 and 2019, respectively. The unaudited proforma financial results for the twelve months ended 2021 combines the consolidated results of the Company and Avtex assuming the acquisition had been completed on January 1, 2020. The reported revenue and net income of $2,273.1 million and $141.0 million would have been $2,320.1 million and $140.3 million for the year ended December 31, 2021, respectively, on an unaudited proforma basis. The unaudited proforma financial results for the twelve months ended 2020 combines the consolidated results of the Company, and Avtex assuming the acquisition had been completed on January 1, 2020 and VoiceFoundry US, VoiceFoundry ASEAN and Serendebyte, assuming the acquisitions had been completed on January 1, 2019. For 2020, the reported revenue and net income of $1,949.2 million and $118.6 million would have been $2,135.6 million and $115.6 million for the year ended December 31, 2020, respectively, on an unaudited proforma basis. The unaudited proforma financial results for the twelve months ended 2019 combines the consolidated results of the Company and VoiceFoundry US, VoiceFoundry ASEAN and Serendebyte, assuming the acquisitions had been completed on January 1, 2019 and also includes FCR assuming the acquisition had been completed on January 1, 2018. For 2019, the reported revenue and net income of $1,643.7 million and $77.2 million would have been $1,741.3 million and $87.0 million for the year ended December 31, 2019, respectively, on an unaudited proforma basis. The Company did not have any material, nonrecurring proforma adjustments directly attributable to the business combination included in the reported proforma revenue earnings. These proforma amounts have been calculated after applying the Company’s accounting policies and adjusting the respective acquired businesses’ results to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment, and intangible assets had been applied from the date indicated, with the consequential tax effects. The unaudited pro forma consolidated results are not to be considered indicative of the results if these acquisitions occurred in the periods mentioned above, or indicative of future operations or results. Additionally, the pro forma consolidated results do not reflect any anticipated synergies expected as a result of the acquisition. Dissolutions In the ordinary course of business, the Company operates different legal entities around the globe that have functional currencies other than USD. From time-to-time, the Company liquidates some of the entities when they are no longer needed to operate its business, and also forms new entities to support the needs of the business. The liquidation proceedings may take different forms, take considerable amount of time, and may also result in losses or gains unrelated to operations. In the second quarter ended June 30, 2020, the Company exited a foreign subsidiary that resulted in a non-cash $2.5 million loss included in Other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss) from the realization of the Accumulated other comprehensive income (loss), which represents the currency translation adjustment of the investment in the foreign subsidiary. Similarly, in the third quarter ended September 30, 2020, the Company exited two foreign subsidiaries that ceased operations and were removed from the consolidated financial statements as of the reporting period ended September 30, 2020. As a result of the deconsolidation, a non-cash $17.4 million loss was included in Other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss). The majority of this loss related to the realization of the Accumulated other comprehensive income (loss) balance which represents the currency translation adjustment of the investment in the foreign subsidiaries. The operating income of these subsidiaries prior to dissolution was not material to the year-to-date consolidated results of the Company. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION [ABSTRACT] | |
SEGMENT INFORMATION | (3) SEGMENT INFORMATION The Company reports the following two segments: TTEC Digita ● Technology Services: Our technology services design, integrate, and operate highly scalable, digital omnichannel technology solutions in the cloud, on premise, or hybrid environment, including journey orchestration, automation and AI, knowledge management, and workforce productivity. ● Professional Services: Our management consulting practices deliver customer experience strategy, analytics, process optimization, and learning and performance services. TTEC Engage ● Customer Acquisition, Growth, and Retention Services: Our customer growth and acquisition services optimize the buying journeys for acquiring new customers by leveraging technology and analytics to deliver personal experiences that we believe increase the quantity and quality of leads and customers. ● Customer Care, Tech Support, and Order Fulfillment Services: Our customer care, technical support, and order fulfillment services provide turnkey contact center solutions, including digital omnichannel technologies, associate recruiting and training, facilities, and operational expertise to create exceptional customer experiences across all touchpoints. ● Digitally enabled back office and specialty services: Our digital AI operations, content moderation, and fraud detection and prevention services provide clients with data tagging and annotation capabilities to train and enable AI platforms, community content moderation, and compliance to meet client content standards, and proactive fraud solutions to assist our clients in the detection and prevention of fraud. The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated. The following tables present certain financial data by segment (in thousands): Year Ended December 31, 2021 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 414,148 $ (44) $ 414,104 $ 30,468 $ 35,437 TTEC Engage 1,858,965 (7) 1,858,958 66,238 181,755 Total $ 2,273,113 $ (51) $ 2,273,062 $ 96,706 $ 217,192 Year Ended December 31, 2020 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 307,278 $ (293) $ 306,985 $ 14,029 $ 45,315 TTEC Engage 1,642,263 — 1,642,263 64,833 159,377 Total $ 1,949,541 $ (293) $ 1,949,248 $ 78,862 $ 204,692 Year Ended December 31, 2019 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 305,595 $ (249) $ 305,346 $ 11,216 $ 38,927 TTEC Engage 1,338,358 — 1,338,358 57,870 84,782 Total $ 1,643,953 $ (249) $ 1,643,704 $ 69,086 $ 123,709 For the Year Ended December 31, 2021 2020 2019 Capital Expenditures TTEC Digital $ 8,919 $ 7,881 $ 14,397 TTEC Engage 51,439 51,891 46,379 Total $ 60,358 $ 59,772 $ 60,776 December 31, 2021 2020 2019 Total Assets TTEC Digital $ 828,255 $ 277,365 $ 238,081 TTEC Engage 1,168,549 1,239,043 1,138,707 Total $ 1,996,804 $ 1,516,408 $ 1,376,788 December 31, 2021 2020 2019 Goodwill TTEC Digital $ 505,222 $ 128,211 $ 66,275 TTEC Engage 234,259 235,291 235,419 Total $ 739,481 $ 363,502 $ 301,694 The following tables present certain financial data based upon the geographic location where the services are provided (in thousands): As of and for the Year Ended December 31, 2021 2020 2019 Revenue United States $ 1,524,654 $ 1,338,267 $ 1,002,524 Philippines 409,360 347,575 370,395 Latin America 114,967 98,633 100,117 Europe / Middle East / Africa 110,909 78,478 70,613 Asia Pacific / India 67,035 59,750 55,554 Canada 46,137 26,545 44,501 Total $ 2,273,062 $ 1,949,248 $ 1,643,704 Property, plant and equipment, gross United States $ 605,582 $ 576,803 $ 559,326 Philippines 158,098 162,391 144,213 Latin America 47,540 46,307 45,743 Europe / Middle East / Africa 19,594 23,043 14,823 Asia Pacific / India 14,977 15,918 21,562 Canada 14,825 13,844 15,516 Total $ 860,616 $ 838,306 $ 801,183 Other long-term assets United States $ 67,291 $ 55,548 $ 57,417 Philippines 6,187 8,756 7,892 Latin America 864 912 993 Europe / Middle East / Africa 1,735 2,328 993 Asia Pacific / India 435 1,726 1,422 Canada 761 168 252 Total $ 77,273 $ 69,438 $ 68,969 |
ACCOUNTS RECEIVABLE AND SIGNIFI
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS | (4) ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS Accounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (in thousands): December 31, 2021 2020 Accounts receivable $ 362,719 $ 383,464 Less: Allowance for credit losses (5,409) (5,067) Accounts receivable, net $ 357,310 $ 378,397 In connection with the implementation of ASC 326 as of January 1, 2020, the Company analyzed the prior history of credit losses on revenue for TTEC as a whole and separately for each of the two segments. Based on this evaluation, no modification to the allowance for credit losses balance was necessary as of the implementation date. At the end of each quarter beginning with March 31, 2020, an allowance for credit losses has been calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the income statement. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible. Activity in the Company’s Allowance for credit losses consists of the following (in thousands): December 31, 2021 2020 2019 Balance, beginning of year $ 5,067 $ 5,452 $ 5,592 Provision for credit losses (350) 494 1,711 Uncollectible receivables written-off (281) (880) (1,311) Effect of foreign currency and other (15) 1 (540) Acquisition 988 — — Balance, end of year $ 5,409 $ 5,067 $ 5,452 Significant Clients The Company had one client that contributed in excess of 10% of total revenue for the year ended December 31, 2021 and 2020. The Company had no clients that contributed in excess of 10% of total revenue for the year ended December 31, 2019. The revenue from these clients as a percentage of total revenue is as follows: Year Ended December 31, 2021 2020 2019 Financial services client 12 % 13 % 3 % Accounts receivable from this client was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Financial services client $ 15,483 $ 58,960 $ 4,321 The Company does have clients with aggregate revenue exceeding $100 million annually and the loss of one or more of these clients could have a material adverse effect on the Company’s business, operating results, or financial condition. To mitigate this risk, the Company has multiple contracts with these larger clients, where each individual contract is for an amount below the $100 million aggregate. To limit the Company’s credit risk with its clients, management performs periodic credit evaluations, maintains allowances for credit losses and may require pre-payment for services from certain clients. Based on currently available information, management does not believe significant credit risk exists as of December 31, 2021. Accounts Receivable Factoring Agreement The Company is party to an Uncommitted Receivables Purchase Agreement (“Agreement”) with Bank of the West (“Bank”), whereby from time-to-time the Company may elect to sell, on a revolving basis, U.S. accounts receivables of certain clients at a discount to the Bank for cash on a limited recourse basis. The maximum amount of receivables that the Company may sell to the Bank at any given time shall not exceed $100 million. The sales of accounts receivable in accordance with the Agreement are reflected as a reduction of Accounts Receivable, net on the Consolidated Balance sheets. The Company has retained no interest in the sold receivables but retains all collection responsibilities on behalf of the Bank. The discount on the accounts receivable sold will be recorded within Other expense, net in the Consolidated Statements of Comprehensive Income (Loss). The cash proceeds from this Agreement are included in the change in accounts receivable within the operating activities section of the Consolidated Statements of Cash Flows. As of December 31, 2021 and 2020, the Company had factored $97.7 million and $71.0 million, respectively, of accounts receivable; under the Agreement discounts on these receivables were not material during the year. As of December 31, 2021 and 2020, the Company had collected $22.5 million and $26.1 million, respectively, of cash from customers which had not been remitted to the Bank. The unremitted cash is Restricted Cash and is included within Prepaid and Other Current Assets with the corresponding liability included in Accrued Expenses on the Consolidated Balance Sheet. The Company has not recorded any servicing assets or liabilities as of December 31, 2021 and 2020 as the fair value of the servicing arrangement as well as the fees earned were not material to the financial statements. |
PROPERTY PLANT AND EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY PLANT AND EQUIPMENT [ABSTRACT] | |
PROPERTY, PLANT AND EQUIPMENT | (5) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands): December 31, 2021 2020 Land and buildings $ 32,942 $ 32,944 Computer equipment and software 503,056 474,415 Telephone equipment 50,256 51,717 Furniture and fixtures 84,944 85,149 Leasehold improvements 189,161 193,823 Motor vehicles 257 258 Property, plant and equipment, gross 860,616 838,306 Less: Accumulated depreciation and amortization (692,212) (659,600) Property, plant and equipment, net $ 168,404 $ 178,706 Depreciation and amortization expense for property, plant and equipment was $63.5 million, $62.7 million and $57.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Included in the computer equipment and software is internally developed software of $19.4 million net and $16.2 million net as of December 31, 2021 and 2020, respectively. During 2021, impairments of internally developed software of $3.2 million were expensed and included in Impairment losses in the Consolidated Statements of Comprehensive Income (Loss). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL [ABSTRACT] | |
GOODWILL. | (6) GOODWILL Goodwill consisted of the following (in thousands): Effect of December 31, Acquisitions / Foreign December 31, 2020 Adjustments Impairments Currency 2021 TTEC Digital $ 128,211 $ 378,908 $ — $ (1,897) $ 505,222 TTEC Engage 235,291 — — (1,032) 234,259 Total $ 363,502 $ 378,908 $ — $ (2,929) $ 739,481 Effect of December 31, Acquisitions / Foreign December 31, 2019 Adjustments Impairments Currency 2020 TTEC Digital $ 66,275 $ 59,341 $ — $ 2,595 $ 128,211 TTEC Engage 235,419 (254) — 126 235,291 Total $ 301,694 $ 59,087 $ — $ 2,721 $ 363,502 Impairment The Company has three reporting units with goodwill and performs a goodwill impairment test on at least an annual basis. The Company conducts its annual goodwill impairment test during the fourth quarter, or more frequently, if indicators of impairment exist. For the annual goodwill impairment analysis, the Company elected to perform a Step 1 evaluation for all of its reporting units, which includes comparing a reporting unit’s estimated fair value to its carrying value. The determination of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rates for the businesses, the useful lives over which the cash flows will occur and determination of appropriate discount rates (based in part on the Company’s weighted average cost of capital). Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. As of December 1, 2021, the date of the annual impairment testing, the Company concluded that for all three of the reporting units the fair values were in excess of their respective carrying values and the goodwill for those reporting units was not impaired. The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. The Company used a market approach and an income approach to determine our best estimates of fair value which incorporated the following significant assumptions: ● Revenue projections, including revenue growth during the forecast periods ranging from 2.5% to 28.8% ; ● EBITDA margin projections held relatively flat over the forecast periods ranging from 11.5% to 21.1% ; ● Estimated income tax rates of 26.1% to 26.9% ; ● Estimated capital expenditures ranging from $3.9 million to $81.3 million, and ● Discount rates ranging from 8.5% to 12.5% based on various inputs, including the risks associated with the specific reporting units, the country of operations as well as their revenue growth and EBITDA margin assumptions. During the third quarter 2020, the Company reassessed the reporting units within the TTEC Digital segment based on a reorganization of the reporting structure within this segment. The Company has changed how it views and assesses performance of the components within the segment as the business has evolved and multiple recent acquisitions have been incorporated. After evaluation, The Company will maintain two reporting units within TTEC Digital but these include different components than previously included. Given the change in reporting units, the Company conducted an impairment test before and after the change, and it was concluded that the fair value of the reporting units exceeded the carrying value on both testing dates. With the change in reporting units, the Company performed a relative fair value valuation calculation to allocate the Company’s historical goodwill between the two reporting units based on the shift in components. The resulting reallocation of goodwill was not material. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INTANGIBLE ASSETS [Abstract] | |
Intangible Assets Disclosure [Text Block] | (7) OTHER INTANGIBLE ASSETS Other intangible assets which are included in Other long-term assets in the accompanying Consolidated Balance Sheets consisted of the following (in thousands): Acquisitions Effect of December 31, and Foreign December 31, 2020 Amortization Impairments Adjustments Currency 2021 Customer relationships, gross $ 173,601 $ — $ — $ 128,186 $ (1,839) $ 299,948 Customer relationships - accumulated amortization (68,769) (25,440) (671) — 1,298 (93,582) Other intangible assets, gross 14,450 — — 5,300 (19) 19,731 Other intangible assets - accumulated amortization (7,223) (6,529) — — 4 (13,748) Other intangible assets, net $ 112,059 $ (31,969) $ (671) $ 133,486 $ (556) $ 212,349 Acquisitions Effect of December 31, and Foreign December 31, 2019 Amortization Impairments Adjustments Currency 2020 Customer relationships, gross $ 161,756 $ — $ — $ 11,570 $ 275 $ 173,601 Customer relationships - accumulated amortization (54,653) (13,640) — — (476) (68,769) Other intangible assets, gross 13,162 — — 1,250 38 14,450 Other intangible assets - accumulated amortization (4,669) (2,546) — — (8) (7,223) Other intangible assets, net $ 115,596 $ (16,186) $ — $ 12,820 $ (171) $ 112,059 The acquisition recorded during 2021 relates to the purchase of Avtex (see Note 2 for further information). The acquisitions recorded during 2020 relate to the purchases of Serendebyte and VoiceFoundry (see Note 2 for further information). Digital - rogenSi In connection with reduced profitability of the rogenSi component of the TTEC Digital segment, an interim impairment analysis was completed during the second quarter of 2019. The long-lived assets reviewed for impairment consisted of the customer relationship intangible, intellectual property, and right of use assets. The Company completed an asset group recoverability evaluation based on the current estimated cash flow based on forecasted revenues and operating income using significant inputs not observable in the market (Level 3 inputs). Based on this calculation, the Company recorded an impairment expense of $2.0 million in the three months ended June 30, 2019, which was included in Impairment losses in the Consolidated Statements of Comprehensive Income (Loss). As part of the $2.0 million impairment $0.4 million was assigned to the customer relationship intangible asset and $0.2 million to the IP intangible asset. At December 31, 2020, the Company reviewed the evaluation completed as of June 30, 2019, and noted no material changes, thus no additional impairment is required. Customer relationships are being amortized over the remaining weighted average useful life of 7.1 years and other intangible assets are being amortized over the remaining weighted average useful life of 1.3 years. Amortization expense related to intangible assets was $32.0 million, $16.2 million and $10.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Expected future amortization of other intangible assets as of December 31, 2021 is as follows (in thousands): 2022 $ 31,147 2023 29,935 2024 27,358 2025 25,324 2026 25,264 Thereafter 73,321 Total $ 212,349 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVES [ABSTRACT] | |
DERIVATIVES | (8) DERIVATIVES Cash Flow Hedges The Company enters into foreign exchange related derivatives. Foreign exchange derivatives entered into consist of forward and option contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Upon proper qualification, these contracts are designated as cash flow hedges. It is the Company’s policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets considers, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company’s creditworthiness. As of December 31, 2021, the Company had not experienced, nor does it anticipate, any issues related to derivative counterparty defaults. The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 (in thousands and net of tax): Year Ended December 31, 2021 2020 2019 Aggregate unrealized net gain/(loss) at beginning of period $ 8,431 $ 4,182 $ (8,278) Add: Net gain/(loss) from change in fair value of cash flow hedges (12,126) 2,321 15,545 Less: Net (gain)/loss reclassified to earnings from effective hedges 3,655 1,928 (3,085) Aggregate unrealized net gain/(loss) at end of period $ (40) $ 8,431 $ 4,182 The Company’s foreign exchange cash flow hedging instruments as of December 31, 2021 and 2020 are summarized as follows (in thousands). All hedging instruments are forward contracts. Local Currency U.S. Dollar % Maturing Contracts Notional Notional in the next Maturing As of December 31, 2021 Amount Amount 12 months Through Canadian Dollar 9,000 $ 7,022 100.0 % June 2022 Philippine Peso 8,472,000 164,295 (1) 51.7 % December 2024 Mexican Peso 1,422,500 63,002 43.2 % December 2024 $ 234,319 Local Currency U.S. Dollar Notional Notional As of December 31, 2020 Amount Amount Canadian Dollar 2,450 $ 1,853 Philippine Peso 6,725,000 130,468 (1) Mexican Peso 1,159,500 52,398 $ 184,719 (1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on December 31, 2021 and December 31, 2020. Fair Value Hedges The Company enters into foreign exchange forward contracts to economically hedge against foreign currency exchange gains and losses on certain receivables and payables of the Company’s foreign operations. Changes in the fair value of derivative instruments designated as fair value hedges are recognized in earnings in Other income (expense), net. As of December 31, 2021 and 2020, the total notional amount of the Company’s forward contracts used as fair value hedges was $32.9 million and $35.5 million, respectively. Derivative Valuation and Settlements The Company’s derivatives as of December 31, 2021 and 2020 were as follows (in thousands): December 31, 2021 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 2,272 $ 204 Other long-term assets 611 — Other current liabilities (1,527) (6) Other long-term liabilities (1,418) — Total fair value of derivatives, net $ (62) $ 198 December 31, 2020 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 6,939 $ 103 Other long-term assets 4,528 — Other current liabilities (73) (118) Other long-term liabilities (4) — Total fair value of derivatives, net $ 11,390 $ (15) The effect of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2021 and 2020 were as follows (in thousands): Year Ended December 31, 2021 2020 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 3,655 $ 1,928 Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 4,939 $ 2,618 Year Ended December 31, 2021 2020 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ 191 $ 205 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | (9) FAIR VALUE The authoritative guidance for fair value measurements establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following presents information as of December 31, 2021 and 2020 of the Company’s assets and liabilities required to be measured at fair value on a recurring basis, as well as the fair value hierarchy used to determine their fair value. Accounts Receivable and Payable Investments – Debt Derivatives - The following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ (62) $ — $ (62) Fair value hedges — 198 — 198 Total net derivative asset (liability) $ — $ 136 $ — $ 136 As of December 31, 2020 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ 11,390 $ — $ 11,390 Fair value hedges — (15) — (15) Total net derivative asset (liability) $ — $ 11,375 $ — $ 11,375 The following is a summary of the Company’s fair value measurements as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 136 $ — Total assets $ — $ 136 $ — Liabilities Deferred compensation plan liability $ — $ (30,012) $ — Derivative instruments, net — — — Contingent consideration — — (9,600) Total liabilities $ — $ (30,012) $ (9,600) Redeemable noncontrolling interest $ — $ — $ (56,316) As of December 31, 2020 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 11,375 $ — Total assets $ — $ 11,375 $ — Liabilities Deferred compensation plan liability $ — $ (23,858) $ — Derivative instruments, net — — — Contingent consideration — — (18,032) Total liabilities $ — $ (23,858) $ (18,032) Redeemable noncontrolling interest $ — $ — $ (52,976) Deferred Compensation Plan Contingent Consideration During the first, second and fourth quarters of 2020, the Company recorded fair value adjustments to the contingent consideration associated with the acquisition of FCR LLC based on decreased estimates of EBITDA which caused the estimated payable to decrease. Accordingly, a $3.3 million decrease, a $1.1 million decrease and a $1.8 million decrease to the payable were recorded as of March 31, 2020, June 30, 2020 and December 31, 2020, respectively, and were included in Other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2020, the final calculated contingent consideration for FCR was zero. During the fourth quarter of 2020, the first quarter of 2021 the second quarter of 2021 and the fourth quarter of 2021, the Company recorded fair value adjustments to the contingent consideration associated with the VF US and VF ASEAN acquisitions based on increased actual results and estimates of EBITDA for 2021 which caused the payables to increase. Accordingly, a combined $4.3 million increase, $0.9 million increase, $0.2 million increase and a $0.1 million increase to the payables were recorded as of December 31, 2020, March 31, 2021, June 30, 2021 and December 31, 2021, respectively, and were included in Other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2021, the expected future contingent consideration for the VF US and VF ASEAN acquisitions is $9.6 million. A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands): Imputed December 31, Interest / December 31, 2020 Acquisitions Payments Adjustments 2021 FCR $ — $ — $ — $ — $ — VF US 14,085 — (7,414) 743 7,414 VF ASEAN 3,947 — (2,186) 425 2,186 Total $ 18,032 $ — $ (9,600) $ 1,168 $ 9,600 Imputed December 31, Interest / December 31, 2019 Acquisitions Payments Adjustments 2020 FCR $ 6,134 $ — $ — $ (6,134) $ — VF US — 10,943 — 3,142 14,085 VF ASEAN — 2,778 — 1,169 3,947 Total $ 6,134 $ 13,721 $ — $ (1,823) $ 18,032 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES [ABSTRACT] | |
INCOME TAXES | (10) INCOME TAXES The sources of pre-tax operating income are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ 108,160 $ 129,620 $ 39,864 Foreign 99,724 40,648 70,547 Total $ 207,884 $ 170,268 $ 110,411 The Company’s selection of an accounting policy with respect to both the GILTI and BEAT rules is to compute the related taxes in the period the entity becomes subject to either. A reasonable estimate of the effects of these provisions has been included in the 2021 annual financial statements. No significant changes in indefinite reinvestment assertion were made during the year. The Company has completed its analysis in regard to the full tax impact related to prior changes in indefinite reinvestment reassertion and any related taxes have been recorded. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions. No additional income taxes have been provided for any remaining outside basis difference inherent in the Company’s foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. The Company has an estimated $264 million of outside basis differences as of December 31, 2021. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates. The components of the Company’s Provision for (benefit from) income taxes are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current provision for (benefit from) Federal $ 20,697 $ 22,763 $ 5,289 State 8,006 9,871 2,826 Foreign 20,161 13,496 18,938 Total current provision for (benefit from) 48,864 46,130 27,053 Deferred provision for (benefit from) Federal (7,017) (2,390) 2,515 State (402) (254) 118 Foreign 8,250 (2,549) (4,009) Total deferred provision for (benefit from) 831 (5,193) (1,376) Total provision for (benefit from) income taxes $ 49,695 $ 40,937 $ 25,677 The following reconciles the Company’s effective tax rate to the federal statutory rate (in thousands): Year Ended December 31, 2021 2020 2019 Income tax per U.S. federal statutory rate (21%, 21%, 21%) $ 43,655 $ 35,756 $ 23,186 State income taxes, net of federal deduction 4,588 6,923 3,144 Change in valuation allowances 12,567 3,903 9,832 Foreign income taxes at different rates than the U.S. (1,416) (783) (3,356) Foreign withholding taxes (93) 106 600 Losses in international markets without tax benefits — (1,656) (2,651) Nondeductible compensation under Section 162(m) 1,494 656 668 Taxes related to equity compensation (4,282) (587) (976) Liabilities for uncertain tax positions (790) 2,882 661 Permanent difference related to foreign exchange gains 3,362 (71) 36 (Income) losses of foreign branch operations (187) (10) 55 Non-taxable earnings of noncontrolling interest (3,085) (1,964) (1,294) Foreign dividend less foreign tax credits (1,142) (1,723) (1,681) Decrease (increase) to deferred tax asset - change in tax rate — (48) (2,848) State and Federal income tax credits and NOL's (4,531) (3,918) (1,176) Foreign earnings taxed currently in U.S. 1,930 1,936 2,172 Taxes related to prior year filings (1,192) (1,718) (1,643) Taxes related to acquisition accounting — 1,317 978 Other (1,183) (64) (30) Income tax per effective tax rate $ 49,695 $ 40,937 $ 25,677 Effective tax rate percentage 23.9% 24.0% 23.3% The Company’s deferred income tax assets and liabilities are summarized as follows (in thousands): Year Ended December 31, 2021 2020 Deferred tax assets, gross Accrued workers compensation, deferred compensation and employee benefits $ 8,441 $ 8,574 Allowance for credit losses, insurance and other accruals 4,767 4,463 Amortization of deferred lease liabilities 15,816 20,352 Net operating losses 18,006 20,508 Equity compensation 2,302 1,660 Customer acquisition and deferred revenue accruals 20,069 6,868 Federal and state tax credits, net 2,759 2,383 Unrealized losses on derivatives 22 1,187 Impairment of equity investment 4,064 4,064 Partnership Investment 106 526 Other 5,052 5,444 Total deferred tax assets, gross 81,404 76,029 Valuation allowances (29,620) (18,697) Total deferred tax assets, net 51,784 57,332 Deferred tax liabilities Depreciation and amortization (10,291) (10,734) Unrealized gain on derivatives — (2,959) Contract acquisition costs (1,831) (3,182) Intangible assets (21,202) (15,880) Operating lease assets (12,481) (16,763) Other (184) (480) Total deferred tax liabilities (45,989) (49,998) Net deferred tax assets $ 5,795 $ 7,334 Quarterly, the Company assesses the likelihood by jurisdiction that its net deferred tax assets will be recovered. Based on the weight of all available evidence, both positive and negative, the Company records a valuation allowance against deferred tax assets when it is more-likely-than-not that a future tax benefit will not be realized. As of December 31, 2021 the Company had approximately $6.9 million of net deferred tax assets in the U.S. and $1.2 million of net deferred tax liabilities across their foreign operations. As of December 31, 2021 the deferred tax valuation allowance was $29.6 million and related primarily to tax losses in foreign jurisdictions which do not meet the “more-likely-than-not” standard under current accounting guidance. When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurred. In 2021, the Company made adjustments to its deferred tax assets and corresponding valuation allowances. The net change to the valuation allowance consisted of the following: a $4.0 million increase related to capital loss carry forwards not expected to be utilized in the United States; a $10.6 million increase in valuation allowance in Mexico, Netherlands, Canada and various other jurisdictions for deferred tax assets that do not meet the “more-likely-than-not” standard; and a $3.7 million release of valuation allowance in Canada, Turkey, the United Kingdom, and various other jurisdictions related to the utilization or write-off of deferred tax assets. Activity in the Company’s valuation allowance accounts consists of the following (in thousands): Year Ended December 31, 2021 2020 2019 Beginning balance $ 18,697 $ 17,051 $ 10,867 Additions of deferred income tax expense 14,660 4,650 7,373 Reductions of deferred income tax expense (3,737) (3,004) (1,189) Ending balance $ 29,620 $ 18,697 $ 17,051 As of December 31, 2021, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands): 2022 $ — 2023 94 2024 125 2025 50 After 2025 8,411 No expiration 9,326 Total $ 18,006 The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements, with an initial period of tax at 0% for four years, which will be fully expired in 2022 and additional periods at a reduced tax rate, expiring at various times beginning in 2030. The aggregate benefit to income tax expense for the years ended December 31, 2021, 2020 and 2019 was approximately $6.3 million, $4.4 million and $8.4 million, respectively, which had a favorable impact on diluted net income per share of $0.13, $0.09 and $0.18, respectively. Accounting for Uncertainty in Income Taxes In accordance with ASC 740, the Company has recorded a reserve for uncertain tax positions. The total amount of interest and penalties recognized in the accompanying Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss) as of December 31, 2021, 2020 and 2019 was approximately $2.8 million, $3.0 million and $2.1 million, respectively. The Company had a reserve for uncertain tax benefits, on a net basis, of $6.9 million and $7.5 million for the years ended December 31, 2021 and 2020, respectively. The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2021 is presented below (in thousands): Balance as of December 31, 2018 $ 4,784 Additions for current year tax positions — Reductions in prior year tax positions — Balance as of December 31, 2019 4,784 Additions for current year tax positions 2,725 Reductions in prior year tax positions — Balance as of December 31, 2020 7,509 Additions for current year tax positions 220 Reductions in prior year tax positions (826) Balance as of December 31, 2021 $ 6,903 At December 31, 2021, the amount of uncertain tax benefits including interest, that, if recognized, would reduce tax expense was $9.8 million. Within the next 12 months, it is expected that the amount of unrecognized tax benefits may be reduced by $1.9 million as a result of the expiration of various statutes of limitation or other confirmations of tax positions. The Company and its domestic and foreign subsidiaries (including Percepta LLC and its domestic and foreign subsidiaries) file income tax returns as required in the U.S. federal jurisdiction and various state and foreign jurisdictions. The following table presents the major tax jurisdictions and tax years that are open as of December 31, 2021 and subject to examination by the respective tax authorities: Tax Jurisdiction Tax Year Ended United States 2017 to Present Australia 2017 to Present India 2017 to Present Canada 2017 to Present Mexico 2016 to Present Philippines 2018 to Present The Company’s U.S. income tax returns filed for the tax years ending December 31, 2017 to present, remain open tax years. The Company has been notified of the intent to audit, or is currently under audit of, income taxes for the United States for tax year 2017 and 2018, the Philippines for tax years 2017 and 2018, the state of California in the United States for tax years 2017 and 2018, and India for tax years 2017 through 2019. During 2020, the Company confirmed the closure of the Florida audit for tax years 2017 through 2019 with no material changes to the financial statements. Although the outcome of examinations by taxing authorities are always uncertain, it is the opinion of management that the resolution of these audits will not have a material effect on the Company’s Consolidated Financial Statements. |
RESTRUCTURING CHARGES, INTEGRAT
RESTRUCTURING CHARGES, INTEGRATION CHARGES AND IMPAIRMENT LOSSES | 12 Months Ended |
Dec. 31, 2021 | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (11) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES Restructuring Charges During the years ended December 31, 2021, 2020 and 2019, the Company continued restructuring activities primarily associated with reductions in the Company’s capacity, workforce and related management in both segments to better align the capacity and workforce with current business needs. During 2021 and 2020, TTEC determined it would close several delivery centers servicing the Engage segment and the expenses related to early termination fees and cease use lease accruals were recorded. These expenses are included in the Restructuring charges, net in the Consolidated Statements of Comprehensive Income (Loss). A summary of the expenses recorded in Restructuring charges, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2021, 2020 and 2019, respectively, is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Reduction in force TTEC Digital $ 858 $ 668 $ 141 TTEC Engage 310 396 894 Total $ 1,168 $ 1,064 $ 1,035 Year Ended December 31, 2021 2020 2019 Facility exit and other charges TTEC Digital $ 10 $ 90 $ 41 TTEC Engage 2,629 2,110 671 Total $ 2,639 $ 2,200 $ 712 A rollforward of the activity in the Company’s restructuring accruals for the years ended December 31, 2021 and 2020, respectively, is as follows (in thousands): Reduction Facility Exit and in Force Other Charges Total Balance as of December 31, 2019 $ 251 $ 74 $ 325 Expense 1,064 2,200 3,264 Payments (1,067) (1,729) (2,796) Changes due to foreign currency (14) (2) (16) Changes in estimates (78) — (78) Balance as of December 31, 2020 156 543 699 Expense 1,252 2,639 3,891 Payments (510) (2,672) (3,182) Changes due to foreign currency (6) 1 (5) Changes in estimates (84) — (84) Balance as of December 31, 2021 $ 808 $ 511 $ 1,319 The remaining restructuring and other accruals are expected to be paid or extinguished during 2022 and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets. Severance Charges In the normal course of business, the Company will pay severance to terminated employees related to programs that are ending when such employees are no longer needed and cannot be repurposed to a new program. During the second quarter of 2020, a $3.0 million accrual was recorded with the expense included in Cost of services during the quarter ended June 30, 2020. During the third and fourth quarters of 2020, a total of $1.6 million was paid and a $0.3 million reduction in expense was recorded. During the year of 2021, a total of $0.4 million was paid and a $0.7 million reduction in expense was recorded and the accrual is zero as of December 31, 2021. Impairment Losses During each of the periods presented, the Company evaluated the recoverability of its leasehold improvement assets at certain customer engagement centers. An asset is considered to be impaired when the anticipated undiscounted future cash flows of its asset group are estimated to be less than the asset group’s carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During 2021, 2020 and 2019, the Company recognized impairment losses, net related to leasehold improvement assets and right of use lease assets of $7.4 million, $5.8 million and $2.7 million, respectively, across the TTEC Digital and TTEC Engage segments. |
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended |
Dec. 31, 2021 | |
INDEBTEDNESS [ABSTRACT] | |
INDEBTEDNESS | (12) INDEBTEDNESS Credit Facility On November 23, 2021, we entered into a Sixth Amendment to our Amended and Restated Credit Agreement and Amendment (“the Credit Agreement”) and Restated Security Agreement originally dated June 3, 2013, (collectively, the “Credit Facility”) to convert the $300 million term loan included in the total Credit Facility commitments, that was previously agreed on March 25, 2021 as part of the Fifth Amendment to the Credit Agreement, into a $1.5 billion senior secured revolving Credit Facility with a syndicate of lenders led by Wells Fargo, National Association, as agent, swingline and fronting lender. The Credit Facility matures on November 23, 2026. We primarily use our Credit Facility to fund working capital, general operations, dividends, acquisitions and other strategic activities. On March 25, 2021, the Company entered into a Fifth Amendment to its Credit Agreement and Credit Facility to increase the total commitments by $300 million to $1.2 billion by exercising the accordion feature that was included in the senior secured revolving credit facility. The $300 million increase was in the form of a term loan, which could be prepaid anytime and would become due February 14, 2024, contemporaneously with the expiration of the revolving line of credit. The maximum commitment under the Credit Facility is $1.5 billion in the aggregate, if certain conditions are satisfied. The Credit Facility commitment fees are payable to the lenders in an amount equal to the unused portion of the Credit Facility multiplied by a rate per annum as determined by reference to the Company’s net leverage ratio. The Credit Agreement contains customary affirmative, negative, and financial covenants, which primarily remained unchanged from the 2019 Credit Facility. The Credit Agreement permits accounts receivable factoring up to the greater of $100 million or 25 percent of the average book value of all accounts receivable over the most recent twelve-month period. The Credit Agreement also permits the utilization of up to $100 million of limits within the Credit Facility for letters of credit to be used in the business. Base rate loans bear interest at a rate equal to the greatest of (i) Wells Fargo’s prime rate, (ii) one half of 1% in excess of the federal funds effective rate, and (iii) 1.25% in excess of the one-month London Interbank Offered Rate (“LIBOR”); plus in each case a margin of 0% to 0.75% based on the Company’s net leverage ratio. Eurodollar loans bear interest at LIBOR plus a margin of 1.0% to 1.75% based on the Company’s net leverage ratio. Alternate currency loans bear interest at rates applicable to their respective currencies. Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for Eurodollar loans. As of December 31, 2021, and 2020, the Company had borrowings of $791.0 million and $385.0 million, respectively, under its Credit Agreement and its average daily utilization was $797.2 million and $550.9 million for the years ended December 31, 2021 and 2020, respectively. The Company had increased borrowings under the Credit Agreement from late March 2020 through late September 2020, related to precautionary measures taken to proactively strengthen the Company’s cash reserves and financial flexibility in response to COVID-19 related uncertainties. As of September 30, 2020, those additional borrowings had been repaid. During early April 2021, the Company increased borrowings by approximately $500 million in connection with the acquisition of Avtex (see Note 2). Based on the current level of availability based on the covenant calculations, the Company’s remaining borrowing capacity was approximately $565 million as of December 31, 2021. As of December 31, 2021, the Company was in compliance with all covenants and conditions under its Credit Agreement. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (13) COMMITMENTS AND CONTINGENCIES Letters of Credit As of December 31, 2021, outstanding letters of credit under the Credit Agreement totaled $22.6 million and primarily guaranteed insurance-related obligations and workers’ compensation. As of December 31, 2021, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $0.3 million. Guarantees Indebtedness under the Credit Agreement is guaranteed by certain of the Company’s present and future domestic subsidiaries. Legal Proceedings From time to time, the Company has been involved in legal actions, both as plaintiff and defendant, which arise in the ordinary course of business. The Company accrues for exposures associated with such legal actions to the extent that losses are deemed both probable and reasonably estimable. To the extent specific reserves have not been made for certain legal proceedings, their ultimate outcome, and consequently, an estimate of possible loss, if any, cannot reasonably be determined at this time. Based on currently available information and advice received from counsel, the Company believes that the disposition or ultimate resolution of any current legal proceedings, except as otherwise specifically reserved for in its financial statements, will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. |
DEFERRED REVENUE AND COSTS
DEFERRED REVENUE AND COSTS | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED REVENUE AND COSTS [ABSTRACT] | |
DEFERRED REVENUE AND COSTS | (14) DEFERRED REVENUE AND COSTS Deferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2021 2020 Deferred Revenue - Current $ 95,608 $ 39,956 Deferred Revenue - Long-term (included in Other long-term liabilities) 17,078 17,434 Total Deferred Revenue $ 112,686 $ 57,390 Deferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2021 2020 Deferred Costs - Current (included in Prepaids and other current assets) $ 49,043 $ 25,669 Deferred Costs - Long-term (included in Other long-term assets) 14,406 18,015 Total Deferred Costs $ 63,449 $ 43,684 Activity in the Company’s Deferred revenue accounts consists of the following (in thousands): Balance as of December 31, 2020 $ 57,390 Additions 297,623 Amortization (242,327) Balance as of December 31, 2021 $ 112,686 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
LEASES [ABSTRACT] | |
Leases | (15) LEASES Operating leases are included in our Consolidated Balance Sheet as Operating lease assets, Current operating lease liabilities and Non-current operating lease liabilities. Finance leases are included in Property, plant and equipment, Other current liabilities and Other long-term liabilities in our Consolidated Balance Sheet. The Company primarily leases real estate and equipment under various arrangements that provide the Company the right-of-use for the underlying asset that require lease payments over the lease term. The Company determines the value of each lease by computing the present value of each lease payment using the interest rate implicit in the lease, if available; otherwise the Company estimates its incremental borrowing rate over the lease term. The Company determines its incremental borrowing rate based on its estimated credit risk with adjustments for each individual leases’ geographical risk and lease term. Operating lease assets also include prepaid rent and initial direct costs less any tenant improvements. The Company’s real estate portfolio typically includes one or more options to renew can extend the lease term one The components of lease expense for the years ended December 31, 2021 and 2020 are as follows (in thousands): Location in Statements of Year Ended December 31, Description Comprehensive Income (Loss) 2021 2020 Amortization of ROU assets - finance leases Depreciation and amortization $ 6,674 $ 7,661 Interest on lease liabilities - finance leases Interest expense 136 203 Operating lease cost (cost resulting from lease payments) Cost of services 39,087 46,375 Operating lease cost (cost resulting from lease payments) Selling, general and administrative 2,770 2,040 Operating lease cost (cost resulting from lease payments) Restructuring 1,614 1,232 Operating lease cost Impairment 5,338 5,127 Operating lease cost (cost resulting from lease payments) Other income (expense), net 1,240 1,149 Short-term lease cost Cost of services 4,529 3,888 Variable lease cost (cost excluded from lease payments Cost of services 1,246 (287) Less: Sublease income Selling, general and administrative (807) (836) Less: Sublease income Other income (expense), net (2,584) (2,464) Total lease cost $ 59,243 $ 64,088 Other supplementary information for the years ended December 31, 2021 and 2020 are as follows (dollar values in thousands): Year Ended December 31, 2021 2020 Finance lease - operating cash flows $ 45 $ 68 Finance lease - financing cash flows $ 6,385 $ 7,911 Operating lease - operating cash flows (fixed payments) $ 52,358 $ 55,862 New ROU assets - operating leases $ 15,280 $ 6,834 Modified ROU assets - operating leases $ 736 $ 6,485 New ROU assets - finance leases $ 1,141 $ 2,292 December 31, 2021 December 31, 2020 Weighted average remaining lease term - finance leases 2.34 years 2.46 years Weighted average remaining lease term - operating leases 3.32 years 3.73 years Weighted average discount rate - finance leases 1.85% 1.64% Weighted average discount rate - operating leases 5.38% 6.95% Operating and financing lease right-of-use assets and lease liabilities within our Consolidated Balance Sheet as of December 31, 2021 and 2020 are as follows (in thousands): Description Location in Balance Sheet December 31, 2021 December 31, 2020 Assets Operating lease assets Operating lease assets $ 90,180 $ 120,820 Finance lease assets Property, plant and equipment, net 7,119 12,659 Total leased assets $ 97,299 $ 133,479 Liabilities Current Operating Current operating lease liabilities $ 44,460 $ 43,651 Finance Other current liabilities 3,001 6,193 Non-current Operating Non-current operating lease liabilities 64,419 98,277 Finance Other long-term liabilities 2,866 4,763 Total lease liabilities $ 114,746 $ 152,884 The future minimum operating lease and finance lease payments required under non-cancelable leases as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 Operating Sub-lease Finance Leases Income Leases Year 1 $ 48,559 $ (3,465) $ 3,026 Year 2 32,054 (3,112) 1,921 Year 3 18,862 (2,905) 870 Year 4 10,162 (2,940) 164 Year 5 3,508 (490) — Thereafter 6,759 — — Total minimum lease payments $ 119,904 $ (12,912) $ 5,981 Less imputed interest (11,025) (114) Total lease liability $ 108,879 $ 5,867 December 31, 2020 Operating Sub-lease Finance Leases Income Leases Year 1 $ 51,120 $ (3,500) $ 6,237 Year 2 46,913 (3,489) 2,740 Year 3 31,085 (3,123) 1,631 Year 4 17,338 (2,905) 579 Year 5 8,288 (2,940) — Thereafter 8,397 (490) — Total minimum lease payments $ 163,141 $ (16,447) $ 11,187 Less imputed interest (21,213) (231) Total lease liability $ 141,928 $ 10,956 In 2008, the Company sub-leased one of its customer engagement centers to a third party for the remaining term of the lease. The sub-lease began on January 1, 2009 and rental income is recognized on a straight-line basis over the term of the sub-lease through 2026 |
OTHER LONG TERM LIAB
OTHER LONG TERM LIAB | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Liabilities Disclosure [Text Block] | (16) OTHER LONG-TERM LIABILITIES The components of Other long-term liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 December 31, 2020 Deferred revenue $ 17,078 $ 17,434 Deferred compensation plan 30,012 23,858 Deferred social security taxes — 15,986 Other 32,737 38,907 Total $ 79,827 $ 96,185 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (17) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents changes in the accumulated balance for each component of Other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) (in thousands): Foreign Currency Derivative Translation Valuation, Net Other, Net Adjustment of Tax of Tax Totals Accumulated other comprehensive income (loss) at December 31, 2018 $ (114,168) $ (8,278) $ (2,150) $ (124,596) Other comprehensive income (loss) before reclassifications 6,688 15,545 (588) 21,645 Amounts reclassified from accumulated other comprehensive income (loss) — (3,085) (198) (3,283) Net current period other comprehensive (income) loss 6,688 12,460 (786) 18,362 Accumulated other comprehensive income (loss) at December 31, 2019 $ (107,480) $ 4,182 $ (2,936) $ (106,234) Accumulated other comprehensive income (loss) at December 31, 2019 $ (107,480) $ 4,182 $ (2,936) $ (106,234) Other comprehensive income (loss) before reclassifications 9,722 2,321 1,016 13,059 Amounts reclassified from accumulated other comprehensive income (loss) 19,619 1,928 (528) 21,019 Net current period other comprehensive income (loss) 29,341 4,249 488 34,078 Accumulated other comprehensive income (loss) at December 31, 2020 $ (78,139) $ 8,431 $ (2,448) $ (72,156) Accumulated other comprehensive income (loss) at December 31, 2020 $ (78,139) $ 8,431 $ (2,448) $ (72,156) Other comprehensive income (loss) before reclassifications (17,408) (12,126) (103) (29,637) Amounts reclassified from accumulated other comprehensive income (loss) — 3,655 (288) 3,367 Net current period other comprehensive income (loss) (17,408) (8,471) (391) (26,270) Accumulated other comprehensive income (loss) at December 31, 2021 $ (95,547) $ (40) $ (2,839) $ (98,426) The following table presents the classification and amount of the reclassifications from Accumulated other comprehensive income (loss) to the Statement of Comprehensive Income (Loss) (in thousands): Statement of For the Year Ended December 31, Comprehensive Income 2021 2020 2019 (Loss) Classification Derivative valuation Loss on foreign currency forward exchange contracts $ 4,939 $ 2,618 $ (4,228) Revenue Tax effect (1,284) (690) 1,143 Provision for income taxes $ 3,655 $ 1,928 $ (3,085) Net income (loss) Other Actuarial loss on defined benefit plan $ (320) $ (588) $ (221) Cost of services Tax effect 32 60 23 Provision for income taxes $ (288) $ (528) $ (198) Net income (loss) |
WEIGHTED AVERAGE SHARE COUNTS
WEIGHTED AVERAGE SHARE COUNTS | 12 Months Ended |
Dec. 31, 2021 | |
Weighted Average Share Counts | |
NET INCOME PER SHARE | (18) WEIGHTED AVERAGE SHARE COUNTS The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): Year Ended December 31, 2021 2020 2019 Shares used in basic earnings per share calculation 46,890 46,647 46,373 Effect of dilutive securities: Restricted stock units 468 318 349 Performance-based restricted stock units 28 28 36 Total effects of dilutive securities 496 346 385 Shares used in dilutive earnings per share calculation 47,386 46,993 46,758 For the years ended December 31, 2021, 2020 and 2019, restricted stock units of 124 thousand, 8 thousand, and 28 thousand, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
EMPLOYEE COMPENSATION PLANS
EMPLOYEE COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE COMPENSATION PLANS [Abstract] | |
EMPLOYEE COMPENSATION PLANS | (19) EMPLOYEE COMPENSATION PLANS Employee Benefit Plan The Company currently has a 401(k) profit-sharing plan that allows participation by U.S. employees who have completed six months of service, as defined, and are 21 years of age or older. Participants may defer up to 75% of their gross pay, up to a maximum limit determined by U.S. federal law. Participants are also eligible for a matching contribution. The Company may from time to time, at its discretion, make a “matching contribution” based on the amount and rate of the elective deferrals. The Company determines how much, if any, it will contribute for each dollar of elective deferrals. Participants vest in matching contributions over a three-year period. Company matching contributions to the 401(k) plan(s) totaled $10.8 million, $4.2 million and $6.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Equity Compensation Plans In February 2020, the Company adopted the TTEC Holdings, Inc., 2020 Equity Incentive Plan (the “2020 Plan”), which permits awards of incentive stock options, non-qualified stock options, stock appreciation rights, shares of restricted common stock, performance stock units and restricted stock units. The 2020 Plan will also provide for annual equity-based compensation grants to members of the Company’s Board of Directors. Options granted to employees under the 2020 Plan generally vest over three For the years ended December 31, 2021, 2020, and 2019, the Company recorded total equity-based compensation expense under all equity-based arrangements (stock options and RSUs) of $16.4 million, $12.5 million and $12.8 million, respectively. For 2021, 2020 and 2019, of the total compensation expense, $6.1 million, $4.3 million and $4.7 million was recognized in Cost of services and $10.3 million, $8.2 million and $8.1 million, was recognized in Selling, general and administrative in the Consolidated Statements of Comprehensive Income (Loss), respectively. For the years ended December 31, 2021, 2020, and 2019, the Company recognized a tax benefit under all equity-based arrangements (stock options and RSUs) of $8.7 million, $3.5 million and $4.2 million, respectively. Restricted Stock Units 2019, 2020 and 2021 RSU Awards: Summary of RSUs: The weighted average grant-date fair value of RSUs, including performance-based RSUs, granted during the years ended December 31, 2021, 2020, and 2019 was $96.47, $44.70, and $40.10, respectively. The total intrinsic value and fair value of RSUs vested during the years ended December 31, 2021, 2020, and 2019 was $14.2 million, $11.5 million, and $12.5 million, respectively. Performance Based Restricted Stock Unit Grants During 2019, the Company awarded performance restricted stock units (“PRSUs”) that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $0.4 million and $1.4 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The award amounts are based on the Company’s annual adjusted operating income for the fiscal years 2019, 2020 and 2021. Each fiscal year’s adjusted operating income will determine the award amount. The Company recognized compensation expense related to PRSUs of $1.1 million and $1.1 million for the years ended December 31, 2021 and 2020, respectively. During 2020, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $0.2 million and $2.0 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded are based on the Company’s annual revenue and adjusted operating income for the fiscal years 2021 and 2022. Each fiscal year’s revenue and adjusted operating income will determine the award amount. The Company recognized compensation expense related to PRSUs of $1.6 million for the year ended December 31, 2021. During 2021, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $1.2 million and $4.9 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded are based on the Company's annual revenue and adjusted operating income for the fiscal year 2023. Fiscal year's 2023 revenue and adjusted operating income will determine the award amount. Expense for these awards will begin at the start of the requisite service period, beginning January 1, 2023. A summary of the status of the Company’s non-vested RSUs and performance-based RSUs and activity for the year ended December 31, 2021 is as follows: Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2020 1,029,176 $ 41.12 Granted 325,078 $ 96.47 Vested (367,597) $ 38.57 Cancellations/expirations (101,045) $ 47.87 Unvested as of December 31, 2021 885,612 $ 61.73 All RSUs vested during the year ended December 31, 2021 were issued out of treasury stock. As of December 31, 2021, there was approximately $37.3 million of total unrecognized compensation expense and approximately $80.2 million in total intrinsic value related to non-vested RSU grants. The unrecognized compensation expense will be recognized over the remaining weighted-average vesting period of 1.6 years using the straight-line method. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2021 | |
STOCK REPURCHASE PROGRAM [ABSTRACT] | |
STOCK REPURCHASE PROGRAM | (20) STOCK REPURCHASE PROGRAM Stock Repurchase Program The Company has a stock repurchase program, which was initially authorized by the Company’s Board of Directors in November 2001, and is accounted for using the cash method. As of December 31, 2021, the cumulative authorized repurchase allowance was $762.3 million. During the year ended December 31, 2021, the Company purchased no additional shares. Since inception of the program, the Company has purchased 46.1 million shares for $735.8 million. As of December 31, 2021, the remaining allowance under the program was approximately $26.6 million. For the period from January 1, 2022 through February 23, 2022, the Company did not purchase any additional shares. The stock repurchase program does not have an expiration date. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS [ABSTRACT] | |
RELATED PARTY TRANSACTIONS | (21) RELATED PARTY TRANSACTIONS The Company entered into an agreement under which Avion, LLC (“Avion”) and Airmax LLC (“Airmax”) provide certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has an indirect 100% beneficial ownership interest in Avion and Airmax. During 2021, 2020 and 2019, the Company expensed $0.6 million, $0.4 million and $1.1 million, respectively, to Avion and Airmax for services provided to the Company. There was $50 thousand in payments due and outstanding to Avion and Airmax as of December 31, 2021. Ms. Regina M. Paolillo, Global Chief Operating Officer of the Company, was a member of the board of directors of Welltok, Inc., a consumer health SaaS company, and partner of the Company in a joint venture. During the years ended December 31, 2021, 2020 and 2019, the Company recorded revenue of $1.5 million, $3.0 million and $5.3 million, respectively, in connection with work performed through the joint venture. As of December 2021, Ms. Paolillo is no longer a member of the board of directors and the joint venture has been wound down. Ms. Regina M. Paolillo is a member of the board of directors of Unisys, a global information technology company. During the year ended December 31, 2021, the Company recorded revenue of $0.4 million in connection with services performed for Unisys. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Overview | Overview TTEC Holdings, Inc. (“TTEC”, “the Company”; pronounced “T-TEC”) is a leading global customer experience as a service (“CXaaS”) partner for many of the world’s most iconic and disruptive brands. TTEC designs, builds, orchestrates, and delivers seamless digitally enabled customer experiences that are designed to increase brand value, customer loyalty, revenue and profitability through personalized, outcome-based interactions. The Company helps clients improve their customer satisfaction while lowering their total cost to service by combining innovative digital solutions with service capabilities that deliver a frictionless customer experience (“CX”) across different channels and phases of the customer lifecycle. TTEC’s 65,000 employees serve clients in the automotive, communication, financial services, national/federal and state and local governments, healthcare, logistics, media and entertainment, e-tail/retail, technology, travel and transportation industries via operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, Singapore, South Africa, Thailand, and the United Kingdom. The Company operates and reports its financial results of operation through two business segments: TTEC Digital and TTEC Engage. ● TTEC Digita l is one of the largest pure-play CX technology service providers with expertise in CX strategy, digital consulting, and transformation enabled by proprietary CX applications and technology partnerships. TTEC Digital designs, builds, and operates robust digital experiences for clients and their customers through the contextual integration and orchestration of customer relationship management (“CRM”), data, analytics, CXaaS technology, and intelligent automation to ensure high-quality, scalable CX outcomes. ● TTEC Engage provides the digitally enabled CX managed services to support our clients’ end-to-end customer interaction delivery at scale. The segment delivers omnichannel customer care, tech support, order fulfillment, customer acquisition, growth, and retention services with industry specialization and distinctive CX capabilities for hypergrowth brands. TTEC Engage also delivers digitally enabled back office and industry specific specialty services including artificial intelligence (“AI”) operations, content moderation, and fraud management services. TTEC Digital and TTEC Engage strategically come together under our unified offering, Humanify ® ® |
Basis Of Presentation | Basis of Presentation The Consolidated Financial Statements are comprised of the accounts of TTEC, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 70% equity owned subsidiary First Call Resolution, LLC and its 70% equity owned subsidiary Serendebyte, Inc. (see Note 2). All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. |
Concentration of Credit Risk | Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of cash equivalents, accounts receivable, accounts payable and debt approximate the carrying amounts because of their short-term nature. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, primarily held in interest-bearing investments, and liquid short-term investments, which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The Company manages a centralized global treasury function in the United States with a focus on safeguarding and optimizing the use of its global cash and cash equivalents. The Company’s cash is held in the U.S. in U.S. dollars and outside of the U.S. in U.S. dollars and foreign currencies. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and utilization of diversified bank deposit accounts and high quality investments. However, the Company can provide no assurances that it will not sustain losses. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Cash and cash equivalents $ 158,205 $ 132,914 $ 82,407 Restricted cash included in "Prepaid and other current assets" 22,477 26,101 23,172 Restricted cash included in "Other noncurrent assets" — — 12 Total $ 180,682 $ 159,015 $ 105,591 |
Accounts Receivable | Accounts Receivable At the end of each quarter an allowance for credit losses will be calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the income statement. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible. |
Derivatives. | Derivatives The Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. The Company also enters into interest rate derivatives which consist of interest rate swaps to reduce the Company’s exposure to interest rate fluctuations associated with its variable rate debt. Upon proper qualification, these contracts are designated as cash flow hedges. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities. All derivative financial instruments are reported at fair value and recorded in Prepaids and other current assets, Other long-term assets, Other current liabilities, and Other long-term liabilities in the accompanying Consolidated Balance Sheets as applicable for each period end. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders’ Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company’s cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue. Any realized gains or losses from the interest rate swaps are recognized in Interest expense. Gains and losses from the settlements of the Company’s net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment. The Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). |
Property, Plant and Equipment, Policy | Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: Building 30 years Computer equipment and software 3 to 7 years Telephone equipment 4 to 7 years Furniture and fixtures 5 years Leasehold improvements Lesser of economic useful life (typically 10 years) or original lease term Other 3 to 7 years The Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows. |
Software Development Costs | Software Development Costs The Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over the estimated useful life equal to the lesser of the license term or 4 or 7 years depending on the software type. Previously, the expense related to these assets has been classified as amortization expense within the income statement. Based on the new guidance adopted as of January 1, 2020, the amortization of any assets that are classified as cloud computing arrangements will be expensed and included in operating expenses within the income statement. The expense for the portion of the internally developed software incurred prior to January 1, 2020 and any assets that are not related to a cloud computing arrangement, will remain in amortization expense on a go-forward basis, as the Company adopted the new standard on a prospective basis. |
Goodwill Policy | Goodwill The Company evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses a two-step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value. |
Other Intangible Assets | Other Intangible Assets The Company has other intangible assets that include customer relationships (definite-lived), trade names (definite-lived) and non-compete agreements (definite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 1 to 12 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A definite-lived intangible asset is considered to be impaired when the forecasted undiscounted cash flows of its asset group are estimated to be less than its carrying value. The Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Similar to goodwill, the Company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets. The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset. If a quantitative analysis is completed, an indefinite-lived intangible asset (i.e. trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that a market participant would pay for use of that trade name. An impairment charge is recorded if the intangible asset’s carrying value exceeds its estimated fair value. |
Restructuring Liabilities | Restructuring Liabilities The Company routinely assesses the profitability and utilization of its customer engagement centers and existing markets. In some cases, the Company has chosen to close under-performing customer engagement centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company’s postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan. |
Income Taxes. | Income Taxes Accounting for income taxes requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards. The Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income (Loss). No significant changes in indefinite reinvestment assertion were made during 2021. The Company has completed its analysis in regard to the full tax impact related to prior changes in indefinite reinvestment reassertion and any related taxes have been recorded. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions. No additional income taxes have been provided for any remaining outside basis difference inherent in our foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which we operate. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from contracts and programs when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Performance obligation is the unit of accounting for revenue recognition under the provisions of ASC Topic 606, “Revenue from Contracts with Customers” and all related amendments (“ASC 606”). A contract’s transaction price is allocated to each distinct performance obligation in recognizing revenue. The Business Process Outsourcing (“BPO”) inbound and outbound service fees are based on either a per minute, per hour, per FTE, per transaction or per call basis, which represents the majority of our contracts. These contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For example, services for the training of the Company’s agents (which are separately billable to the customer) are a separate promise in the BPO contracts, but they are not distinct from the primary service obligations to transfer services to the customers. The performance of the customer service by the agents is highly dependent on the initial, growth, and seasonal training services provided to the agents during the life of a program. The training itself is not considered to have value to the customer on a standalone basis, and therefore, training on a standalone basis cannot be considered a separate unit of accounting. The Company therefore defers revenue from certain training services that are rendered mainly upon commencement of a new client contract or program, including seasonal programs. Revenue is also deferred when there is significant growth training in an existing program. Accordingly, recognition of initial, growth, and seasonal training revenues and associated costs (consisting primarily of labor and related expenses) are deferred and amortized over the period of economic benefit. With the exception of training which is typically billed upfront and deferred, the remainder of revenue is invoiced on a monthly or quarterly basis as services are performed and does not create a contract asset or liability. In addition to revenue from BPO services, revenue also consists of fees from services for program launch, professional consulting, fully-hosted or managed technology and learning innovation services. The contracts containing these service offerings may contain multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The Company forecasts its expected cost based on historical data, current prevailing wages, other direct and indirect costs incurred in recently completed contracts, market conditions, and other client specific cost considerations. For these services, the point at which the transfer of control occurs determines when revenue is recognized in a specific reporting period. Within our Digital segment, where there are product sales, the attribution of revenue is recognized when the transfer of control is completed and the products are delivered to the client’s location. Where services are rendered to a customer, the attribution is aligned with the progress of work and is recognized over time (i.e. based on measuring the progress toward complete satisfaction of a performance obligation using an output method or an input method). Where output method is used, revenue is recognized on the basis of direct measurements of the value to the customer of the goods or services transferred relative to the remaining goods or services promised under the contract. The majority of the Company’s services are recognized over time using the input method in which revenue is recognized on the basis of efforts or inputs toward satisfying a performance obligation (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to satisfy the performance obligation. The measures used provide faithful depiction of the transfer of goods or services to the customers. For example, revenue is recognized on certain consulting contracts based on labor hours expended as a measurement of progress where the consulting work involves input of consultants’ time. The progress is measured based on the hours expended over total number of estimated hours included in the contract multiplied by the total contract consideration. The contract consideration can be a fixed price or an hourly rate, and in either case, the use of labor hours expended as an input measure provides a faithful depiction of the transfer of services to the customers. Deferred revenues for these services represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from i) receipt of license fees that are deferred due to one or more of the revenue recognition criteria not being met, and ii) the billing of annual customer support agreements, annual managed service agreements, and billings for other professional services that have not yet been performed by the Company. The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in either Deferred revenue or Other long-term liabilities, as applicable, in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services. Costs directly associated with revenue deferred, consisting primarily of labor and related expenses, are also deferred and recognized in proportion to the expected future revenue from the contract. Variable consideration exists in contracts for certain client programs that provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based conditions. Variable consideration is estimated at contract inception at its most likely value and updated at the end of each reporting period as additional performance data becomes available. Revenue related to such variable consideration is recognized only to the extent that a significant reversal of any incremental revenue is not considered probable. Contract modifications are routine in the performance of the customer contracts. Contracts are often modified to account for customer mandated changes in the contract specifications or requirements, including service level changes. In most instances, contract modifications relate to goods or services that are incremental and distinctly identifiable, and, therefore, are accounted for prospectively. Incremental Costs to Obtain a Contract Direct and incremental costs to obtain or fulfill a contract are capitalized, and the capitalized costs are amortized over the corresponding period of benefit, determined on a contract by contract basis. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a customer contract that it would not have incurred if the contract had not been obtained. Contract acquisition costs consist primarily of payment of commissions to sales personnel and are incurred when customer contracts are signed. The deferred sales commission amounts are amortized based on the expected period of economic benefit and are classified as current or non-current based on the timing of when they are expected to be recognized as an expense. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained. Sales commissions are paid for obtaining new clients only and are not paid for contract renewals or contract modifications. Capitalized costs of obtaining contracts are periodically reviewed for impairment. As of December 31, 2021, the Company has a deferred asset of $6.4 million related to sales commissions. In certain cases, the Company negotiates an upfront payment to a customer in conjunction with the execution of a contract. Such upfront payments are critical to acquisition of new business and are often used as an incentive to negotiate favorable rates from the clients and are accounted for as upfront discounts for future services. Such payments are either made in cash at the time of execution of a contract or are netted against the Company’s service invoices. Payments to customers are capitalized as contract acquisition costs and are amortized in proportion to the expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. Such payments are considered a reduction of the selling prices of the Company’s products or services, and therefore, are accounted for as a reduction of revenue when amortized. Such capitalized contract acquisition costs are periodically reviewed for impairment taking into consideration ongoing future cash flows expected from the contract and estimated remaining useful life of the contract. Practical Expedients and Exemptions Some of the Company’s service contracts are short-term in nature with a contract term of one one |
Lease Expense | Lease Expense The Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of lease payments over the initial term of its operating leases. The initial term could include the “build-out” period of leases, where no lease payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to lease expense over the lease term. The landlord/tenant incentives are recorded as a reduction to the right of use asset and depreciated on a straight line basis over the remaining lease term once the assets are placed in service. |
Equity-Based Compensation Expense | Equity-Based Compensation Expense Equity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within Stockholders’ Equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases”, along with subsequent amendments, which amended the existing standards for lease accounting. The Company adopted ASU 2016-02 as of January 1, 2019 using the modified retrospective method. In January 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” (ASC 326), which amends the methodology of how and when companies measure credit losses on financial instruments. The objective of the ASU is to provide financial statement users more useful information regarding expected credit losses on financial instruments and other commitments. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarifies the scope of guidance in ASU 2016-13. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments – Credit Losses (Topic 326), Targeted Transition Relief”, which amended the transition guidance for the new credit losses standard. The ASU is effective for interim and annual periods beginning on or after December 15, 2019 with early adoption permitted, using a modified retrospective approach. The Company adopted the new guidance effective January 1, 2020 and the adoption did not have a material effect on the financial statements. See Note 4 for additional disclosures. In August 2018, the FASB issued ASU 2018-15 “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“CCA”), which aligns the accounting for the costs of implementing CCA’s with the requirements for capitalizing implementation costs incurred to develop or obtain hosting arrangement. The ASU is effective for interim and annual periods beginning on or after December 15, 2019, using a prospective or retrospective transition approach. The Company adopted the new guidance effective January 1, 2020 using the prospective approach and the adoption did not have a material effect on the financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” (ASU 740), which is intended to simplify various aspects related to income tax accounting. The ASU is effective for interim and annual periods beginning on or after December 15, 2020 with early adoption permitted. The Company adopted the new guidance effective January 1, 2021, and the adoption had no effect on the financial statements or related disclosures during the year. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which now requires the acquirer to account for revenue contracts in accordance with Topic 606 as if it had acquired the contract, versus recording these assets and liabilities at fair value on acquisition date. The ASU is effective for interim and annual periods beginning on or after December 15, 2022 with early adoption permitted. The Company adopted the new guidance during the fourth quarter of 2021 which required application to all acquisitions completed during the adoption year. See further discussion in Note 2. Other Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform” (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of the London Interbank Offered Rate (“LIBOR”) on or before December 31, 2021. The ASU is effective from March 12, 2020 through December 31, 2022 and could impact the accounting for LIBOR provisions in the Company’s credit facility agreement. In addition, in January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform – Scope,” which clarified the scope of ASC 848 relating to contract modifications. The Company has not yet adopted the standard but does not expect that the adoption of this guidance will have a material impact on the Company’s financial position, results of operations or cash flows. |
OVERVIEW AND BASIS OF PRESENT_2
OVERVIEW AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): December 31, 2021 December 31, 2020 December 31, 2019 Cash and cash equivalents $ 158,205 $ 132,914 $ 82,407 Restricted cash included in "Prepaid and other current assets" 22,477 26,101 23,172 Restricted cash included in "Other noncurrent assets" — — 12 Total $ 180,682 $ 159,015 $ 105,591 |
Schedule of property, plant and equipment useful lives | Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: Building 30 years Computer equipment and software 3 to 7 years Telephone equipment 4 to 7 years Furniture and fixtures 5 years Leasehold improvements Lesser of economic useful life (typically 10 years) or original lease term Other 3 to 7 years |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Avtex | |
Schedule of Assets Acquired and Liabilities Assumed | The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Preliminary Estimate of Acquisition Date Fair Value Cash $ 18,638 Accounts receivable, net 22,214 Prepaid expenses 26,389 Current income tax receivables 93 Net fixed assets 3,162 Right of use assets 3,614 Other Assets 480 Tradename 5,300 Intellectual property intangible 770 Customer relationships 128,200 Goodwill 378,882 $ 587,742 Accounts payable $ 20,580 Accrued employee compensation 4,325 Accrued expenses 250 Right of use liability - current 678 Deferred revenue 56,765 Accrued income taxes 332 Deferred tax liability 1,930 Right of use liability - noncurrent 2,936 $ 87,796 Total purchase price $ 499,946 |
VoiceFoundry US | |
Schedule of Assets Acquired and Liabilities Assumed | The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Accounts receivable, net $ 3,758 Prepaid and other expenses 345 Tradename 400 Non-compete 150 Customer relationships 6,550 Goodwill 35,881 $ 47,084 Accounts payable $ 289 Accrued employee compensation 741 Deferred revenue 170 $ 1,200 Total purchase price $ 45,884 |
VoiceFoundry ASEAN | |
Schedule of Assets Acquired and Liabilities Assumed | A multi-period excess earnings method under the income approach was used to estimate the fair value of the customer relationships intangible asset. The significant assumption utilized in calculating the fair value of the customer relationships intangible asset was the customer attrition rate. The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 1,300 Accounts receivable, net 937 Prepaid and other expenses 115 Income tax receivable 30 Property, plant and equipment 274 Tradename 300 Customer relationships 3,100 Goodwill 14,418 $ 20,474 Accounts payable $ 960 Accrued employee compensation 113 Deferred revenue 236 Deferred tax liability 1,013 Other accrued liabilities (78) $ 2,244 Total purchase price $ 18,230 |
FCR | |
Schedule of Assets Acquired and Liabilities Assumed | The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 5,225 Accounts receivable, net 10,659 Prepaid expenses 357 Property and equipment 6,006 Other assets 224 Operating lease assets 5,127 Tradename 8,600 Customer relationships 38,540 Goodwill 96,739 $ 171,477 Accounts payable $ 388 Operating lease liability - short-term 1,160 Accrued employee compensation and benefits 4,049 Accrued expenses 72 Operating lease liability - long-term 3,967 $ 9,636 Total purchase price $ 161,841 |
Serendebyte | |
Schedule of Assets Acquired and Liabilities Assumed | The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 3,123 Accounts receivable, net 1,243 Prepaid and other expenses 1,327 Property, plant and equipment 20 Deferred tax assets 14 Tradename 400 Customer relationships 1,920 Goodwill 9,033 $ 17,080 Accounts payable $ 120 Accrued employee compensation and benefits 1,025 Accrued income taxes 170 Accrued expenses 2,208 Deferred tax liabilities - long-term 629 $ 4,152 Total purchase price $ 12,928 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION [ABSTRACT] | |
Schedule of Segment Selected Financial Data | The following tables present certain financial data by segment (in thousands): Year Ended December 31, 2021 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 414,148 $ (44) $ 414,104 $ 30,468 $ 35,437 TTEC Engage 1,858,965 (7) 1,858,958 66,238 181,755 Total $ 2,273,113 $ (51) $ 2,273,062 $ 96,706 $ 217,192 Year Ended December 31, 2020 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 307,278 $ (293) $ 306,985 $ 14,029 $ 45,315 TTEC Engage 1,642,263 — 1,642,263 64,833 159,377 Total $ 1,949,541 $ (293) $ 1,949,248 $ 78,862 $ 204,692 Year Ended December 31, 2019 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 305,595 $ (249) $ 305,346 $ 11,216 $ 38,927 TTEC Engage 1,338,358 — 1,338,358 57,870 84,782 Total $ 1,643,953 $ (249) $ 1,643,704 $ 69,086 $ 123,709 For the Year Ended December 31, 2021 2020 2019 Capital Expenditures TTEC Digital $ 8,919 $ 7,881 $ 14,397 TTEC Engage 51,439 51,891 46,379 Total $ 60,358 $ 59,772 $ 60,776 December 31, 2021 2020 2019 Total Assets TTEC Digital $ 828,255 $ 277,365 $ 238,081 TTEC Engage 1,168,549 1,239,043 1,138,707 Total $ 1,996,804 $ 1,516,408 $ 1,376,788 December 31, 2021 2020 2019 Goodwill TTEC Digital $ 505,222 $ 128,211 $ 66,275 TTEC Engage 234,259 235,291 235,419 Total $ 739,481 $ 363,502 $ 301,694 |
Schedule of Revenue by Geographic Area | The following tables present certain financial data based upon the geographic location where the services are provided (in thousands): As of and for the Year Ended December 31, 2021 2020 2019 Revenue United States $ 1,524,654 $ 1,338,267 $ 1,002,524 Philippines 409,360 347,575 370,395 Latin America 114,967 98,633 100,117 Europe / Middle East / Africa 110,909 78,478 70,613 Asia Pacific / India 67,035 59,750 55,554 Canada 46,137 26,545 44,501 Total $ 2,273,062 $ 1,949,248 $ 1,643,704 Property, plant and equipment, gross United States $ 605,582 $ 576,803 $ 559,326 Philippines 158,098 162,391 144,213 Latin America 47,540 46,307 45,743 Europe / Middle East / Africa 19,594 23,043 14,823 Asia Pacific / India 14,977 15,918 21,562 Canada 14,825 13,844 15,516 Total $ 860,616 $ 838,306 $ 801,183 Other long-term assets United States $ 67,291 $ 55,548 $ 57,417 Philippines 6,187 8,756 7,892 Latin America 864 912 993 Europe / Middle East / Africa 1,735 2,328 993 Asia Pacific / India 435 1,726 1,422 Canada 761 168 252 Total $ 77,273 $ 69,438 $ 68,969 |
ACCOUNTS RECEIVABLE AND SIGNI_2
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (in thousands): December 31, 2021 2020 Accounts receivable $ 362,719 $ 383,464 Less: Allowance for credit losses (5,409) (5,067) Accounts receivable, net $ 357,310 $ 378,397 |
Schedule of Change in Allowance for Doubtful Accounts | Activity in the Company’s Allowance for credit losses consists of the following (in thousands): December 31, 2021 2020 2019 Balance, beginning of year $ 5,067 $ 5,452 $ 5,592 Provision for credit losses (350) 494 1,711 Uncollectible receivables written-off (281) (880) (1,311) Effect of foreign currency and other (15) 1 (540) Acquisition 988 — — Balance, end of year $ 5,409 $ 5,067 $ 5,452 |
Schedule of Revenue from Significant Clients | Year Ended December 31, 2021 2020 2019 Financial services client 12 % 13 % 3 % |
Schedule of Accounts Receivable Outstanding from Significant Clients | Accounts receivable from this client was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Financial services client $ 15,483 $ 58,960 $ 4,321 |
PROPERTY PLANT AND EQUIPMENT (T
PROPERTY PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY PLANT AND EQUIPMENT [ABSTRACT] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): December 31, 2021 2020 Land and buildings $ 32,942 $ 32,944 Computer equipment and software 503,056 474,415 Telephone equipment 50,256 51,717 Furniture and fixtures 84,944 85,149 Leasehold improvements 189,161 193,823 Motor vehicles 257 258 Property, plant and equipment, gross 860,616 838,306 Less: Accumulated depreciation and amortization (692,212) (659,600) Property, plant and equipment, net $ 168,404 $ 178,706 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL [ABSTRACT] | |
Schedule of Goodwill Rollforward | Goodwill consisted of the following (in thousands): Effect of December 31, Acquisitions / Foreign December 31, 2020 Adjustments Impairments Currency 2021 TTEC Digital $ 128,211 $ 378,908 $ — $ (1,897) $ 505,222 TTEC Engage 235,291 — — (1,032) 234,259 Total $ 363,502 $ 378,908 $ — $ (2,929) $ 739,481 Effect of December 31, Acquisitions / Foreign December 31, 2019 Adjustments Impairments Currency 2020 TTEC Digital $ 66,275 $ 59,341 $ — $ 2,595 $ 128,211 TTEC Engage 235,419 (254) — 126 235,291 Total $ 301,694 $ 59,087 $ — $ 2,721 $ 363,502 |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INTANGIBLE ASSETS [Abstract] | |
Schedule of Intangible Assets (Excluding Goodwill) | Other intangible assets which are included in Other long-term assets in the accompanying Consolidated Balance Sheets consisted of the following (in thousands): Acquisitions Effect of December 31, and Foreign December 31, 2020 Amortization Impairments Adjustments Currency 2021 Customer relationships, gross $ 173,601 $ — $ — $ 128,186 $ (1,839) $ 299,948 Customer relationships - accumulated amortization (68,769) (25,440) (671) — 1,298 (93,582) Other intangible assets, gross 14,450 — — 5,300 (19) 19,731 Other intangible assets - accumulated amortization (7,223) (6,529) — — 4 (13,748) Other intangible assets, net $ 112,059 $ (31,969) $ (671) $ 133,486 $ (556) $ 212,349 Acquisitions Effect of December 31, and Foreign December 31, 2019 Amortization Impairments Adjustments Currency 2020 Customer relationships, gross $ 161,756 $ — $ — $ 11,570 $ 275 $ 173,601 Customer relationships - accumulated amortization (54,653) (13,640) — — (476) (68,769) Other intangible assets, gross 13,162 — — 1,250 38 14,450 Other intangible assets - accumulated amortization (4,669) (2,546) — — (8) (7,223) Other intangible assets, net $ 115,596 $ (16,186) $ — $ 12,820 $ (171) $ 112,059 |
Future Amortization Expense of Finite Lived Intangible Assets | Expected future amortization of other intangible assets as of December 31, 2021 is as follows (in thousands): 2022 $ 31,147 2023 29,935 2024 27,358 2025 25,324 2026 25,264 Thereafter 73,321 Total $ 212,349 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVES [ABSTRACT] | |
Schedule of Cash Flow Hedges OCI Rollforward | Year Ended December 31, 2021 2020 2019 Aggregate unrealized net gain/(loss) at beginning of period $ 8,431 $ 4,182 $ (8,278) Add: Net gain/(loss) from change in fair value of cash flow hedges (12,126) 2,321 15,545 Less: Net (gain)/loss reclassified to earnings from effective hedges 3,655 1,928 (3,085) Aggregate unrealized net gain/(loss) at end of period $ (40) $ 8,431 $ 4,182 |
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | The Company’s foreign exchange cash flow hedging instruments as of December 31, 2021 and 2020 are summarized as follows (in thousands). All hedging instruments are forward contracts. Local Currency U.S. Dollar % Maturing Contracts Notional Notional in the next Maturing As of December 31, 2021 Amount Amount 12 months Through Canadian Dollar 9,000 $ 7,022 100.0 % June 2022 Philippine Peso 8,472,000 164,295 (1) 51.7 % December 2024 Mexican Peso 1,422,500 63,002 43.2 % December 2024 $ 234,319 Local Currency U.S. Dollar Notional Notional As of December 31, 2020 Amount Amount Canadian Dollar 2,450 $ 1,853 Philippine Peso 6,725,000 130,468 (1) Mexican Peso 1,159,500 52,398 $ 184,719 (1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on December 31, 2021 and December 31, 2020. |
Schedule of Derivatives Instruments on Balance Sheet | The Company’s derivatives as of December 31, 2021 and 2020 were as follows (in thousands): December 31, 2021 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 2,272 $ 204 Other long-term assets 611 — Other current liabilities (1,527) (6) Other long-term liabilities (1,418) — Total fair value of derivatives, net $ (62) $ 198 December 31, 2020 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 6,939 $ 103 Other long-term assets 4,528 — Other current liabilities (73) (118) Other long-term liabilities (4) — Total fair value of derivatives, net $ 11,390 $ (15) |
Schedule of cash flow hedge impact on Statement of Comprehensive Income | Year Ended December 31, 2021 2020 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 3,655 $ 1,928 Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 4,939 $ 2,618 |
Schedule of fair value derivative impact on Statement of Comprehensive Income | Year Ended December 31, 2021 2020 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ 191 $ 205 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE [Abstract] | |
Schedule of Fair Value Derivative Assets and Liabilities | The following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ (62) $ — $ (62) Fair value hedges — 198 — 198 Total net derivative asset (liability) $ — $ 136 $ — $ 136 As of December 31, 2020 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ 11,390 $ — $ 11,390 Fair value hedges — (15) — (15) Total net derivative asset (liability) $ — $ 11,375 $ — $ 11,375 |
Schedule of Fair Value Assets and Liabilities | The following is a summary of the Company’s fair value measurements as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 136 $ — Total assets $ — $ 136 $ — Liabilities Deferred compensation plan liability $ — $ (30,012) $ — Derivative instruments, net — — — Contingent consideration — — (9,600) Total liabilities $ — $ (30,012) $ (9,600) Redeemable noncontrolling interest $ — $ — $ (56,316) As of December 31, 2020 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 11,375 $ — Total assets $ — $ 11,375 $ — Liabilities Deferred compensation plan liability $ — $ (23,858) $ — Derivative instruments, net — — — Contingent consideration — — (18,032) Total liabilities $ — $ (23,858) $ (18,032) Redeemable noncontrolling interest $ — $ — $ (52,976) |
Schedule of Business Acquisitions by Acquisition Contingent Consideration | A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands): Imputed December 31, Interest / December 31, 2020 Acquisitions Payments Adjustments 2021 FCR $ — $ — $ — $ — $ — VF US 14,085 — (7,414) 743 7,414 VF ASEAN 3,947 — (2,186) 425 2,186 Total $ 18,032 $ — $ (9,600) $ 1,168 $ 9,600 Imputed December 31, Interest / December 31, 2019 Acquisitions Payments Adjustments 2020 FCR $ 6,134 $ — $ — $ (6,134) $ — VF US — 10,943 — 3,142 14,085 VF ASEAN — 2,778 — 1,169 3,947 Total $ 6,134 $ 13,721 $ — $ (1,823) $ 18,032 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES [ABSTRACT] | |
Sources of Pre-Tax Accounting Income | The sources of pre-tax operating income are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ 108,160 $ 129,620 $ 39,864 Foreign 99,724 40,648 70,547 Total $ 207,884 $ 170,268 $ 110,411 |
Components of Income Tax Expense (Benefit) | The components of the Company’s Provision for (benefit from) income taxes are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current provision for (benefit from) Federal $ 20,697 $ 22,763 $ 5,289 State 8,006 9,871 2,826 Foreign 20,161 13,496 18,938 Total current provision for (benefit from) 48,864 46,130 27,053 Deferred provision for (benefit from) Federal (7,017) (2,390) 2,515 State (402) (254) 118 Foreign 8,250 (2,549) (4,009) Total deferred provision for (benefit from) 831 (5,193) (1,376) Total provision for (benefit from) income taxes $ 49,695 $ 40,937 $ 25,677 |
Effective Income Tax Rate Reconciliation Table | The following reconciles the Company’s effective tax rate to the federal statutory rate (in thousands): Year Ended December 31, 2021 2020 2019 Income tax per U.S. federal statutory rate (21%, 21%, 21%) $ 43,655 $ 35,756 $ 23,186 State income taxes, net of federal deduction 4,588 6,923 3,144 Change in valuation allowances 12,567 3,903 9,832 Foreign income taxes at different rates than the U.S. (1,416) (783) (3,356) Foreign withholding taxes (93) 106 600 Losses in international markets without tax benefits — (1,656) (2,651) Nondeductible compensation under Section 162(m) 1,494 656 668 Taxes related to equity compensation (4,282) (587) (976) Liabilities for uncertain tax positions (790) 2,882 661 Permanent difference related to foreign exchange gains 3,362 (71) 36 (Income) losses of foreign branch operations (187) (10) 55 Non-taxable earnings of noncontrolling interest (3,085) (1,964) (1,294) Foreign dividend less foreign tax credits (1,142) (1,723) (1,681) Decrease (increase) to deferred tax asset - change in tax rate — (48) (2,848) State and Federal income tax credits and NOL's (4,531) (3,918) (1,176) Foreign earnings taxed currently in U.S. 1,930 1,936 2,172 Taxes related to prior year filings (1,192) (1,718) (1,643) Taxes related to acquisition accounting — 1,317 978 Other (1,183) (64) (30) Income tax per effective tax rate $ 49,695 $ 40,937 $ 25,677 Effective tax rate percentage 23.9% 24.0% 23.3% |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred income tax assets and liabilities are summarized as follows (in thousands): Year Ended December 31, 2021 2020 Deferred tax assets, gross Accrued workers compensation, deferred compensation and employee benefits $ 8,441 $ 8,574 Allowance for credit losses, insurance and other accruals 4,767 4,463 Amortization of deferred lease liabilities 15,816 20,352 Net operating losses 18,006 20,508 Equity compensation 2,302 1,660 Customer acquisition and deferred revenue accruals 20,069 6,868 Federal and state tax credits, net 2,759 2,383 Unrealized losses on derivatives 22 1,187 Impairment of equity investment 4,064 4,064 Partnership Investment 106 526 Other 5,052 5,444 Total deferred tax assets, gross 81,404 76,029 Valuation allowances (29,620) (18,697) Total deferred tax assets, net 51,784 57,332 Deferred tax liabilities Depreciation and amortization (10,291) (10,734) Unrealized gain on derivatives — (2,959) Contract acquisition costs (1,831) (3,182) Intangible assets (21,202) (15,880) Operating lease assets (12,481) (16,763) Other (184) (480) Total deferred tax liabilities (45,989) (49,998) Net deferred tax assets $ 5,795 $ 7,334 |
Valuation Allowance Rollforward | Activity in the Company’s valuation allowance accounts consists of the following (in thousands): Year Ended December 31, 2021 2020 2019 Beginning balance $ 18,697 $ 17,051 $ 10,867 Additions of deferred income tax expense 14,660 4,650 7,373 Reductions of deferred income tax expense (3,737) (3,004) (1,189) Ending balance $ 29,620 $ 18,697 $ 17,051 |
Expiration of Net Operating Loss Carryforwards | As of December 31, 2021, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands): 2022 $ — 2023 94 2024 125 2025 50 After 2025 8,411 No expiration 9,326 Total $ 18,006 |
Reserve for Uncertain Tax Positions Rollforward | The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2021 is presented below (in thousands): Balance as of December 31, 2018 $ 4,784 Additions for current year tax positions — Reductions in prior year tax positions — Balance as of December 31, 2019 4,784 Additions for current year tax positions 2,725 Reductions in prior year tax positions — Balance as of December 31, 2020 7,509 Additions for current year tax positions 220 Reductions in prior year tax positions (826) Balance as of December 31, 2021 $ 6,903 |
Jurisdictions Open to Income Tax Examination | Tax Jurisdiction Tax Year Ended United States 2017 to Present Australia 2017 to Present India 2017 to Present Canada 2017 to Present Mexico 2016 to Present Philippines 2018 to Present |
RESTRUCTURING CHARGES, INTEGR_2
RESTRUCTURING CHARGES, INTEGRATION CHARGES AND IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |
Schedule of Restructuring Liabilities | A summary of the expenses recorded in Restructuring charges, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2021, 2020 and 2019, respectively, is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Reduction in force TTEC Digital $ 858 $ 668 $ 141 TTEC Engage 310 396 894 Total $ 1,168 $ 1,064 $ 1,035 Year Ended December 31, 2021 2020 2019 Facility exit and other charges TTEC Digital $ 10 $ 90 $ 41 TTEC Engage 2,629 2,110 671 Total $ 2,639 $ 2,200 $ 712 |
Schedule of Restructuring Liability Rollforward | A rollforward of the activity in the Company’s restructuring accruals for the years ended December 31, 2021 and 2020, respectively, is as follows (in thousands): Reduction Facility Exit and in Force Other Charges Total Balance as of December 31, 2019 $ 251 $ 74 $ 325 Expense 1,064 2,200 3,264 Payments (1,067) (1,729) (2,796) Changes due to foreign currency (14) (2) (16) Changes in estimates (78) — (78) Balance as of December 31, 2020 156 543 699 Expense 1,252 2,639 3,891 Payments (510) (2,672) (3,182) Changes due to foreign currency (6) 1 (5) Changes in estimates (84) — (84) Balance as of December 31, 2021 $ 808 $ 511 $ 1,319 |
DEFERRED REVENUE AND COSTS (Tab
DEFERRED REVENUE AND COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED REVENUE AND COSTS [ABSTRACT] | |
Schedule of deferred revenue and costs | Deferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2021 2020 Deferred Revenue - Current $ 95,608 $ 39,956 Deferred Revenue - Long-term (included in Other long-term liabilities) 17,078 17,434 Total Deferred Revenue $ 112,686 $ 57,390 Deferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2021 2020 Deferred Costs - Current (included in Prepaids and other current assets) $ 49,043 $ 25,669 Deferred Costs - Long-term (included in Other long-term assets) 14,406 18,015 Total Deferred Costs $ 63,449 $ 43,684 Activity in the Company’s Deferred revenue accounts consists of the following (in thousands): Balance as of December 31, 2020 $ 57,390 Additions 297,623 Amortization (242,327) Balance as of December 31, 2021 $ 112,686 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lease, Cost [Abstract] | |
Lease, Cost Table | The components of lease expense for the years ended December 31, 2021 and 2020 are as follows (in thousands): Location in Statements of Year Ended December 31, Description Comprehensive Income (Loss) 2021 2020 Amortization of ROU assets - finance leases Depreciation and amortization $ 6,674 $ 7,661 Interest on lease liabilities - finance leases Interest expense 136 203 Operating lease cost (cost resulting from lease payments) Cost of services 39,087 46,375 Operating lease cost (cost resulting from lease payments) Selling, general and administrative 2,770 2,040 Operating lease cost (cost resulting from lease payments) Restructuring 1,614 1,232 Operating lease cost Impairment 5,338 5,127 Operating lease cost (cost resulting from lease payments) Other income (expense), net 1,240 1,149 Short-term lease cost Cost of services 4,529 3,888 Variable lease cost (cost excluded from lease payments Cost of services 1,246 (287) Less: Sublease income Selling, general and administrative (807) (836) Less: Sublease income Other income (expense), net (2,584) (2,464) Total lease cost $ 59,243 $ 64,088 |
Schedule of leases | Other supplementary information for the years ended December 31, 2021 and 2020 are as follows (dollar values in thousands): Year Ended December 31, 2021 2020 Finance lease - operating cash flows $ 45 $ 68 Finance lease - financing cash flows $ 6,385 $ 7,911 Operating lease - operating cash flows (fixed payments) $ 52,358 $ 55,862 New ROU assets - operating leases $ 15,280 $ 6,834 Modified ROU assets - operating leases $ 736 $ 6,485 New ROU assets - finance leases $ 1,141 $ 2,292 December 31, 2021 December 31, 2020 Weighted average remaining lease term - finance leases 2.34 years 2.46 years Weighted average remaining lease term - operating leases 3.32 years 3.73 years Weighted average discount rate - finance leases 1.85% 1.64% Weighted average discount rate - operating leases 5.38% 6.95% |
Assets and liabilities lessee [Table Text Block] | Operating and financing lease right-of-use assets and lease liabilities within our Consolidated Balance Sheet as of December 31, 2021 and 2020 are as follows (in thousands): Description Location in Balance Sheet December 31, 2021 December 31, 2020 Assets Operating lease assets Operating lease assets $ 90,180 $ 120,820 Finance lease assets Property, plant and equipment, net 7,119 12,659 Total leased assets $ 97,299 $ 133,479 Liabilities Current Operating Current operating lease liabilities $ 44,460 $ 43,651 Finance Other current liabilities 3,001 6,193 Non-current Operating Non-current operating lease liabilities 64,419 98,277 Finance Other long-term liabilities 2,866 4,763 Total lease liabilities $ 114,746 $ 152,884 |
Schedule of future minimum operating lease payments | The future minimum operating lease and finance lease payments required under non-cancelable leases as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 Operating Sub-lease Finance Leases Income Leases Year 1 $ 48,559 $ (3,465) $ 3,026 Year 2 32,054 (3,112) 1,921 Year 3 18,862 (2,905) 870 Year 4 10,162 (2,940) 164 Year 5 3,508 (490) — Thereafter 6,759 — — Total minimum lease payments $ 119,904 $ (12,912) $ 5,981 Less imputed interest (11,025) (114) Total lease liability $ 108,879 $ 5,867 December 31, 2020 Operating Sub-lease Finance Leases Income Leases Year 1 $ 51,120 $ (3,500) $ 6,237 Year 2 46,913 (3,489) 2,740 Year 3 31,085 (3,123) 1,631 Year 4 17,338 (2,905) 579 Year 5 8,288 (2,940) — Thereafter 8,397 (490) — Total minimum lease payments $ 163,141 $ (16,447) $ 11,187 Less imputed interest (21,213) (231) Total lease liability $ 141,928 $ 10,956 |
Schedule of future minimum finance lease payments | December 31, 2021 Operating Sub-lease Finance Leases Income Leases Year 1 $ 48,559 $ (3,465) $ 3,026 Year 2 32,054 (3,112) 1,921 Year 3 18,862 (2,905) 870 Year 4 10,162 (2,940) 164 Year 5 3,508 (490) — Thereafter 6,759 — — Total minimum lease payments $ 119,904 $ (12,912) $ 5,981 Less imputed interest (11,025) (114) Total lease liability $ 108,879 $ 5,867 December 31, 2020 Operating Sub-lease Finance Leases Income Leases Year 1 $ 51,120 $ (3,500) $ 6,237 Year 2 46,913 (3,489) 2,740 Year 3 31,085 (3,123) 1,631 Year 4 17,338 (2,905) 579 Year 5 8,288 (2,940) — Thereafter 8,397 (490) — Total minimum lease payments $ 163,141 $ (16,447) $ 11,187 Less imputed interest (21,213) (231) Total lease liability $ 141,928 $ 10,956 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Noncurrent Liabilities [Table Text Block] | The components of Other long-term liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 December 31, 2020 Deferred revenue $ 17,078 $ 17,434 Deferred compensation plan 30,012 23,858 Deferred social security taxes — 15,986 Other 32,737 38,907 Total $ 79,827 $ 96,185 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents changes in the accumulated balance for each component of Other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) (in thousands): Foreign Currency Derivative Translation Valuation, Net Other, Net Adjustment of Tax of Tax Totals Accumulated other comprehensive income (loss) at December 31, 2018 $ (114,168) $ (8,278) $ (2,150) $ (124,596) Other comprehensive income (loss) before reclassifications 6,688 15,545 (588) 21,645 Amounts reclassified from accumulated other comprehensive income (loss) — (3,085) (198) (3,283) Net current period other comprehensive (income) loss 6,688 12,460 (786) 18,362 Accumulated other comprehensive income (loss) at December 31, 2019 $ (107,480) $ 4,182 $ (2,936) $ (106,234) Accumulated other comprehensive income (loss) at December 31, 2019 $ (107,480) $ 4,182 $ (2,936) $ (106,234) Other comprehensive income (loss) before reclassifications 9,722 2,321 1,016 13,059 Amounts reclassified from accumulated other comprehensive income (loss) 19,619 1,928 (528) 21,019 Net current period other comprehensive income (loss) 29,341 4,249 488 34,078 Accumulated other comprehensive income (loss) at December 31, 2020 $ (78,139) $ 8,431 $ (2,448) $ (72,156) Accumulated other comprehensive income (loss) at December 31, 2020 $ (78,139) $ 8,431 $ (2,448) $ (72,156) Other comprehensive income (loss) before reclassifications (17,408) (12,126) (103) (29,637) Amounts reclassified from accumulated other comprehensive income (loss) — 3,655 (288) 3,367 Net current period other comprehensive income (loss) (17,408) (8,471) (391) (26,270) Accumulated other comprehensive income (loss) at December 31, 2021 $ (95,547) $ (40) $ (2,839) $ (98,426) |
Schedule of reclassifications from Accumulated other comprehensive income (loss) | The following table presents the classification and amount of the reclassifications from Accumulated other comprehensive income (loss) to the Statement of Comprehensive Income (Loss) (in thousands): Statement of For the Year Ended December 31, Comprehensive Income 2021 2020 2019 (Loss) Classification Derivative valuation Loss on foreign currency forward exchange contracts $ 4,939 $ 2,618 $ (4,228) Revenue Tax effect (1,284) (690) 1,143 Provision for income taxes $ 3,655 $ 1,928 $ (3,085) Net income (loss) Other Actuarial loss on defined benefit plan $ (320) $ (588) $ (221) Cost of services Tax effect 32 60 23 Provision for income taxes $ (288) $ (528) $ (198) Net income (loss) |
WEIGHTED AVERAGE SHARE COUNTS (
WEIGHTED AVERAGE SHARE COUNTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Weighted Average Share Counts | |
Schedule of Diluted Shares Calculation | The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): Year Ended December 31, 2021 2020 2019 Shares used in basic earnings per share calculation 46,890 46,647 46,373 Effect of dilutive securities: Restricted stock units 468 318 349 Performance-based restricted stock units 28 28 36 Total effects of dilutive securities 496 346 385 Shares used in dilutive earnings per share calculation 47,386 46,993 46,758 |
EMPLOYEE COMPENSATION PLANS (Ta
EMPLOYEE COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE COMPENSATION PLANS [Abstract] | |
Summary of non-vested RSU's and performance-based RSU's | Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2020 1,029,176 $ 41.12 Granted 325,078 $ 96.47 Vested (367,597) $ 38.57 Cancellations/expirations (101,045) $ 47.87 Unvested as of December 31, 2021 885,612 $ 61.73 |
OVERVIEW AND BASIS OF PRESENT_3
OVERVIEW AND BASIS OF PRESENTATION (TABLES) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 158,205 | $ 132,914 | $ 82,407 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 180,682 | 159,015 | 105,591 | $ 78,237 |
Prepaid Expenses and Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 22,477 | $ 26,101 | 23,172 | |
Other Noncurrent Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 12 |
OVERVIEW AND BASIS OF PRESENT_4
OVERVIEW AND BASIS OF PRESENTATION (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Building | |
Property Plant and Equipment Line Items | |
Useful life | 30 years |
Furniture And Fixtures | |
Property Plant and Equipment Line Items | |
Useful life | 5 years |
Leasehold Improvements | |
Property Plant and Equipment Line Items | |
Useful life | 10 years |
Minimum | Computer Equipment and software | |
Property Plant and Equipment Line Items | |
Useful life | 3 years |
Minimum | Telephone Equipment | |
Property Plant and Equipment Line Items | |
Useful life | 4 years |
Minimum | Other | |
Property Plant and Equipment Line Items | |
Useful life | 3 years |
Minimum | Software and Software Development Costs [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 4 years |
Minimum | Other Intangible Assets [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 1 year |
Maximum | Computer Equipment and software | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Telephone Equipment | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Other | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Software and Software Development Costs [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Other Intangible Assets [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 12 years |
OVERVIEW AND BASIS OF PRESENT_5
OVERVIEW AND BASIS OF PRESENTATION (NARRATIVE) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)employee | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Number of employees | employee | 65,000 |
Deferred sales commission | $ | $ 6.4 |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true |
Revenue, Practical Expedient, Financing Component [true false] | true |
Percepta LLC | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
ownership percentage | 55.00% |
FCR | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
ownership percentage | 70.00% |
Serendebyte | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
ownership percentage | 70.00% |
ACQUISITIONS ASSETS ACQUIRED (T
ACQUISITIONS ASSETS ACQUIRED (TABLES) (Details) - USD ($) $ in Thousands | Apr. 08, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 04, 2020 | Aug. 05, 2020 | Feb. 07, 2020 | Dec. 31, 2019 | Oct. 26, 2019 |
Business Acquisition [Line Items] | ||||||||
Operating lease assets | $ 90,180 | $ 120,820 | ||||||
Deferred tax assets. | 51,784 | 57,332 | ||||||
Goodwill | 739,481 | 363,502 | $ 301,694 | |||||
Operating lease liability - short-term | 44,460 | 43,651 | ||||||
Accrued employee compensation and benefits | 156,324 | 163,658 | ||||||
Operating lease liability - long-term | $ 64,419 | $ 98,277 | ||||||
Avtex | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 18,638 | |||||||
Accounts receivable. | 22,214 | |||||||
Prepaid Expenses | 26,389 | |||||||
Other assets | 480 | |||||||
Operating lease assets | 3,614 | |||||||
Income Taxes Receivable | 93 | |||||||
Fixed Assets Acquired | 3,162 | |||||||
Goodwill | 378,882 | |||||||
Total assets acquired | 587,742 | |||||||
Accounts payable | 20,580 | |||||||
Operating lease liability - short-term | 678 | |||||||
Accrued employee compensation and benefits | 4,325 | |||||||
Accrued income taxes | 332 | |||||||
Accrued expenses | 250 | |||||||
Operating lease liability - long-term | 2,936 | |||||||
Deferred tax liabilities | 1,930 | |||||||
Deferred revenue. | 56,765 | |||||||
Total liabilities assumed | 87,796 | |||||||
Total purchase price | 499,946 | |||||||
Avtex | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 5,300 | |||||||
Avtex | Intellectual Property [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 770 | |||||||
Avtex | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 128,200 | |||||||
VoiceFoundry US | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts receivable. | $ 3,758 | |||||||
Prepaid Expenses | 345 | |||||||
Goodwill | 35,881 | |||||||
Total assets acquired | 47,084 | |||||||
Accounts payable | 289 | |||||||
Accrued employee compensation and benefits | 741 | |||||||
Deferred revenue. | 170 | |||||||
Total liabilities assumed | 1,200 | |||||||
Total purchase price | 45,884 | |||||||
VoiceFoundry US | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 400 | |||||||
VoiceFoundry US | Noncompete Agreements [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 150 | |||||||
VoiceFoundry US | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 6,550 | |||||||
VoiceFoundry ASEAN | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 1,300 | |||||||
Accounts receivable. | 937 | |||||||
Prepaid Expenses | 115 | |||||||
Property, plant and equipment. | 274 | |||||||
Income Taxes Receivable | 30 | |||||||
Goodwill | 14,418 | |||||||
Total assets acquired | 20,474 | |||||||
Accounts payable | 960 | |||||||
Accrued employee compensation and benefits | 113 | |||||||
Deferred tax liabilities | 1,013 | |||||||
Deferred revenue. | 236 | |||||||
Other accrued assets liabilities, net | (78) | |||||||
Total liabilities assumed | 2,244 | |||||||
Total purchase price | 18,230 | |||||||
VoiceFoundry ASEAN | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 300 | |||||||
VoiceFoundry ASEAN | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 3,100 | |||||||
Serendebyte | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 3,123 | |||||||
Accounts receivable. | 1,243 | |||||||
Prepaid Expenses | 1,327 | |||||||
Property, plant and equipment. | 20 | |||||||
Deferred tax assets. | 14 | |||||||
Goodwill | 9,033 | |||||||
Total assets acquired | 17,080 | |||||||
Accounts payable | 120 | |||||||
Accrued employee compensation and benefits | 1,025 | |||||||
Accrued income taxes | 170 | |||||||
Accrued expenses | 2,208 | |||||||
Deferred tax liabilities | 629 | |||||||
Total liabilities assumed | 4,152 | |||||||
Total purchase price | 12,928 | |||||||
Serendebyte | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 400 | |||||||
Serendebyte | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 1,920 | |||||||
FCR | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 5,225 | |||||||
Accounts receivable. | 10,659 | |||||||
Prepaid Expenses | 357 | |||||||
Property, plant and equipment. | 6,006 | |||||||
Other assets | 224 | |||||||
Operating lease assets | 5,127 | |||||||
Goodwill | 96,739 | |||||||
Total assets acquired | 171,477 | |||||||
Accounts payable | 388 | |||||||
Operating lease liability - short-term | 1,160 | |||||||
Accrued employee compensation and benefits | 4,049 | |||||||
Accrued expenses | 72 | |||||||
Operating lease liability - long-term | 3,967 | |||||||
Total liabilities assumed | 9,636 | |||||||
Total purchase price | 161,841 | |||||||
FCR | Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 8,600 | |||||||
FCR | Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 38,540 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES (NARRATIVE) (Details) | Dec. 31, 2021USD ($)employee | Dec. 21, 2021USD ($) | Apr. 08, 2021USD ($) | Nov. 04, 2020USD ($) | Sep. 30, 2020USD ($) | Aug. 05, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Feb. 07, 2020USD ($) | Oct. 26, 2019USD ($) | Apr. 30, 2022USD ($) | Apr. 30, 2021USD ($) | Dec. 31, 2021USD ($)employee | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)employee | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||||
Entity Number of Employees | employee | 65,000 | 65,000 | 65,000 | |||||||||||||||||||
Other liabilities, noncurrent | $ 79,827,000 | $ 79,827,000 | $ 96,185,000 | $ 79,827,000 | $ 96,185,000 | |||||||||||||||||
Redeemable noncontrolling interest | 56,316,000 | 56,316,000 | 52,976,000 | 56,316,000 | 52,976,000 | $ 48,923,000 | ||||||||||||||||
Contingent Consideration, at fair value | 9,600,000 | 9,600,000 | 18,032,000 | 9,600,000 | 18,032,000 | 6,134,000 | ||||||||||||||||
Business Combination Contingent Consideration Liability | 9,600,000 | 9,600,000 | 18,032,000 | 9,600,000 | 18,032,000 | 6,134,000 | ||||||||||||||||
Revenue of Acquirees since Acquisition Date, Actual | 147,700,000 | 19,400,000 | 18,600,000 | |||||||||||||||||||
Income (loss) from operations of Acquirees since Acquisition Date, Actual | 9,800,000 | 1,900,000 | 1,400,000 | |||||||||||||||||||
Sales Revenue Services Net | 2,273,062,000 | 1,949,248,000 | 1,643,704,000 | |||||||||||||||||||
Net income attributable to TTEC stockholders | 140,970,000 | 118,648,000 | 77,164,000 | |||||||||||||||||||
Business Acquisition, Pro Forma Revenue | 2,320,100,000 | 2,135,600,000 | 1,741,300,000 | |||||||||||||||||||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 140,300,000 | 115,600,000 | 87,000,000 | |||||||||||||||||||
(Gain) Loss on dissolution of subsidiary | 0 | (19,905,000) | 0 | |||||||||||||||||||
Expected forecast volatility rate [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 20 | |||||||||||||||||||||
Foreign Subsidiary 1 [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
(Gain) Loss on dissolution of subsidiary | $ 2,500,000 | |||||||||||||||||||||
Foreign Subsidiary 2 [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
(Gain) Loss on dissolution of subsidiary | $ 17,400,000 | |||||||||||||||||||||
TTEC Digital | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Sales Revenue Services Net | 414,104,000 | 306,985,000 | 305,346,000 | |||||||||||||||||||
TTEC Engage | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Sales Revenue Services Net | 1,858,958,000 | 1,642,263,000 | 1,338,358,000 | |||||||||||||||||||
Accounting Standards Update 2021-08 [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Increase (Decrease) in Deferred Revenue | (4,900,000) | |||||||||||||||||||||
Faneuil | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Asset Acquisition, Date of Acquisition Agreement | Dec. 21, 2021 | |||||||||||||||||||||
Asset Acquisition, Price of Acquisition, Expected | $ 140,000,000 | |||||||||||||||||||||
Avtex | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
ownership percentage | 100.00% | |||||||||||||||||||||
VoiceFoundry US | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Payments to Acquire Businesses | $ 34,300,000 | |||||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | $ 300,000 | |||||||||||||||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 10,900,000 | 7,400,000 | 10,900,000 | 10,900,000 | ||||||||||||||||||
Contingent Consideration, at fair value | 7,400,000 | 7,400,000 | 7,400,000 | |||||||||||||||||||
Business Combination Contingent Consideration Liability | $ 7,400,000 | 7,400,000 | $ 7,400,000 | |||||||||||||||||||
Increase (decrease) in contingent consideration payable | $ 3,200,000 | |||||||||||||||||||||
VoiceFoundry US | Risk Free Interest Rate | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 2.6 | 2.6 | 2.6 | |||||||||||||||||||
VoiceFoundry US | Expected forecast volatility rate [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 47 | 47 | 47 | |||||||||||||||||||
VoiceFoundry US | Discount Rate | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 23.1 | 23.1 | 23.1 | |||||||||||||||||||
Serendebyte | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
ownership percentage | 70.00% | 70.00% | 70.00% | |||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | |||||||||||||||||||||
FCR | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
ownership percentage | 70.00% | 70.00% | 70.00% | |||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | |||||||||||||||||||||
Avtex | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Date of Acquisition | Apr. 8, 2021 | |||||||||||||||||||||
Description of Acquired Entity | Avtex is an end-to-end customer experience and CXaaS solutions provider with offerings in Genesys and Microsoft cloud solutions | |||||||||||||||||||||
Payments to Acquire Businesses | $ 499,946,000 | |||||||||||||||||||||
Base purchase price to acquire businesses | 490,000,000 | |||||||||||||||||||||
Total purchase price | $ 499,946,000 | |||||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | $ 100,000 | |||||||||||||||||||||
Avtex | Accounting Standards Update 2021-08 [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Sales Revenue Services Net | $ 3,400,000 | |||||||||||||||||||||
Avtex | Customer Relationships [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 9 years | |||||||||||||||||||||
Avtex | Trade Names [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 1 year | |||||||||||||||||||||
Avtex | Intellectual Property [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 3 years | |||||||||||||||||||||
VoiceFoundry US | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Total purchase price | $ 45,884,000 | |||||||||||||||||||||
Contingent Consideration, at fair value | $ 7,414,000 | 7,414,000 | 14,085,000 | $ 7,414,000 | 14,085,000 | 0 | ||||||||||||||||
Business Combination Contingent Consideration Liability | $ 7,414,000 | 7,414,000 | 14,085,000 | $ 7,414,000 | 14,085,000 | 0 | ||||||||||||||||
Increase (decrease) in contingent consideration payable | $ (7,400,000) | $ (7,400,000) | $ (25,000) | $ (200,000) | (500,000) | |||||||||||||||||
VoiceFoundry US | Discount Rate | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 23.1 | 23.1 | 23.1 | |||||||||||||||||||
VoiceFoundry US | Customer Relationships [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 4 years | |||||||||||||||||||||
VoiceFoundry US | Trade Names [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 2 years | |||||||||||||||||||||
VoiceFoundry US | VoiceFoundry US | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Date of Acquisition | Aug. 5, 2020 | |||||||||||||||||||||
Percentage of Voting Interests Acquired | 100.00% | |||||||||||||||||||||
Description of Acquired Entity | VoiceFoundry is a preferred Amazon Connect cloud contact center service and implementation partner | |||||||||||||||||||||
VoiceFoundry ASEAN | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Date of Acquisition | Nov. 4, 2020 | |||||||||||||||||||||
Payments to Acquire Businesses | $ 15,200,000 | |||||||||||||||||||||
Total purchase price | 18,230,000 | |||||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | $ 200,000 | |||||||||||||||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 2,800,000 | |||||||||||||||||||||
Contingent Consideration, at fair value | $ 2,186,000 | $ 2,186,000 | 3,947,000 | $ 2,186,000 | 3,947,000 | 0 | ||||||||||||||||
Business Combination Contingent Consideration Liability | $ 2,186,000 | 2,186,000 | 3,947,000 | $ 2,186,000 | 3,947,000 | 0 | ||||||||||||||||
Increase (decrease) in contingent consideration payable | $ (2,200,000) | $ (2,200,000) | $ (100,000) | $ 100,000 | $ (400,000) | 1,200,000 | ||||||||||||||||
VoiceFoundry ASEAN | Maximum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Future Value of Liabilities Incurred From Business Acquisitions | $ 2,200,000 | |||||||||||||||||||||
VoiceFoundry ASEAN | Risk Free Interest Rate | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 1.6 | |||||||||||||||||||||
VoiceFoundry ASEAN | Expected forecast volatility rate [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 50 | |||||||||||||||||||||
VoiceFoundry ASEAN | Discount Rate | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business combination contingent consideration measurement input | 18.4 | 18.4 | 18.4 | 18.4 | ||||||||||||||||||
VoiceFoundry ASEAN | Customer Relationships [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 4 years | |||||||||||||||||||||
VoiceFoundry ASEAN | Trade Names [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 2 years | |||||||||||||||||||||
VoiceFoundry ASEAN | VoiceFoundry ASEAN | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Percentage of Voting Interests Acquired | 100.00% | |||||||||||||||||||||
Serendebyte | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Date of Acquisition | Feb. 7, 2020 | |||||||||||||||||||||
Percentage of Voting Interests Acquired | 70.00% | |||||||||||||||||||||
Description of Acquired Entity | Serendebyte Inc., a Delaware corporation (“the Serendebyte Transaction”). Serendebyte is an autonomous customer experience and intelligent automation solutions provider based in India, the United States, and Canada | |||||||||||||||||||||
Payments to Acquire Businesses | $ 9,000,000 | |||||||||||||||||||||
Total purchase price | 12,928,000 | |||||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | $ 800,000 | |||||||||||||||||||||
Cash balance retained | 2,200,000 | |||||||||||||||||||||
Redeemable noncontrolling interest | $ 3,800,000 | |||||||||||||||||||||
Serendebyte | Discount Rate | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Unobservable Measurement Input, Uncertainty, Description | 35% | |||||||||||||||||||||
Serendebyte | Customer Relationships [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 5 years | |||||||||||||||||||||
Serendebyte | Trade Names [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 3 years | |||||||||||||||||||||
Serendebyte | Serendebyte | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Percentage of Voting Interests Acquired | 70.00% | |||||||||||||||||||||
FCR | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Date of Acquisition | Oct. 26, 2019 | |||||||||||||||||||||
Percentage of Voting Interests Acquired | 70.00% | |||||||||||||||||||||
Entity Number of Employees | 2,000 | |||||||||||||||||||||
Contingent Consideration Arrangements, Basis for Amount | Significant assumptions include a discount rate of 16.7% expected forecast volatility of 20%, an equivalent metric risk premium of 15.1%, risk-free rate of 1.6% and a credit spread of 1.8%. | |||||||||||||||||||||
Payments to Acquire Businesses | $ 4,500,000 | |||||||||||||||||||||
Total purchase price | 161,841,000 | |||||||||||||||||||||
Other liabilities, noncurrent | $ 0 | $ 0 | $ 0 | |||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | $ 700,000 | |||||||||||||||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 107,000,000 | |||||||||||||||||||||
Cash balance retained | 700,000 | |||||||||||||||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 6,500,000 | |||||||||||||||||||||
Redeemable noncontrolling interest | 48,300,000 | |||||||||||||||||||||
Contingent Consideration, at fair value | 0 | 10,900,000 | 0 | 0 | 0 | 0 | 6,134,000 | |||||||||||||||
Business Combination Contingent Consideration Liability | 0 | 10,900,000 | 0 | $ 0 | $ 0 | $ 0 | $ 6,134,000 | |||||||||||||||
Contingent Consideration, at Fair Value, Current Portion | $ 6,100,000 | |||||||||||||||||||||
Increase (decrease) in contingent consideration payable | $ 1,800,000 | $ 1,100,000 | $ 3,300,000 | $ 1,800,000 | $ 1,100,000 | $ 3,300,000 | ||||||||||||||||
FCR | Discount Rate | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Unobservable Measurement Input, Uncertainty, Description | 19.6% | |||||||||||||||||||||
Business combination contingent consideration measurement input | 16.7 | |||||||||||||||||||||
FCR | TTEC Engage | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Description of Acquired Entity | First Call Resolution, LLC (“FCR”), an Oregon limited liability company (“the FCR Transaction”). FCR is a customer care, social networking and business process solutions service provider with approximately 2,000 employees based in the U.S. | |||||||||||||||||||||
FCR | Customer Relationships [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 10 years | |||||||||||||||||||||
FCR | Trade Names [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Useful life | 4 years |
SEGMENT INFORMATION (SEGMENT FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net Revenue | $ 2,273,062 | $ 1,949,248 | $ 1,643,704 |
Depreciation and amortization | 96,706 | 78,862 | 69,086 |
Income (Loss) from Operations | 217,192 | 204,692 | 123,709 |
Capital Expenditures | 60,358 | 59,772 | 60,776 |
Total Assets | 1,996,804 | 1,516,408 | 1,376,788 |
Goodwill | 739,481 | 363,502 | 301,694 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 2,273,113 | 1,949,541 | 1,643,953 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | (51) | (293) | (249) |
TTEC Digital | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 414,104 | 306,985 | 305,346 |
Depreciation and amortization | 30,468 | 14,029 | 11,216 |
Income (Loss) from Operations | 35,437 | 45,315 | 38,927 |
Capital Expenditures | 8,919 | 7,881 | 14,397 |
Total Assets | 828,255 | 277,365 | 238,081 |
Goodwill | 505,222 | 128,211 | 66,275 |
TTEC Digital | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 414,148 | 307,278 | 305,595 |
TTEC Digital | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | (44) | (293) | (249) |
TTEC Engage | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 1,858,958 | 1,642,263 | 1,338,358 |
Depreciation and amortization | 66,238 | 64,833 | 57,870 |
Income (Loss) from Operations | 181,755 | 159,377 | 84,782 |
Capital Expenditures | 51,439 | 51,891 | 46,379 |
Total Assets | 1,168,549 | 1,239,043 | 1,138,707 |
Goodwill | 234,259 | 235,291 | 235,419 |
TTEC Engage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 1,858,965 | 1,642,263 | 1,338,358 |
TTEC Engage | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | $ (7) | $ 0 | $ 0 |
SEGMENT INFORMATION (REVENUE GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | $ 2,273,062 | $ 1,949,248 | $ 1,643,704 |
Property, plant and equipment, gross | 860,616 | 838,306 | 801,183 |
Other long-term assets | 77,273 | 69,438 | 68,969 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 1,524,654 | 1,338,267 | 1,002,524 |
Property, plant and equipment, gross | 605,582 | 576,803 | 559,326 |
Other long-term assets | 67,291 | 55,548 | 57,417 |
Philippines [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 409,360 | 347,575 | 370,395 |
Property, plant and equipment, gross | 158,098 | 162,391 | 144,213 |
Other long-term assets | 6,187 | 8,756 | 7,892 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 114,967 | 98,633 | 100,117 |
Property, plant and equipment, gross | 47,540 | 46,307 | 45,743 |
Other long-term assets | 864 | 912 | 993 |
Europe Middle East Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 110,909 | 78,478 | 70,613 |
Property, plant and equipment, gross | 19,594 | 23,043 | 14,823 |
Other long-term assets | 1,735 | 2,328 | 993 |
Asia Pacific[ Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 67,035 | 59,750 | 55,554 |
Property, plant and equipment, gross | 14,977 | 15,918 | 21,562 |
Other long-term assets | 435 | 1,726 | 1,422 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 46,137 | 26,545 | 44,501 |
Property, plant and equipment, gross | 14,825 | 13,844 | 15,516 |
Other long-term assets | $ 761 | $ 168 | $ 252 |
ACCOUNTS RECEIVABLE (SCHEDULE O
ACCOUNTS RECEIVABLE (SCHEDULE OF ACCOUNTS RECEIVABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | ||||
Accounts receivable | $ 362,719 | $ 383,464 | ||
Less: Allowance for credit losses | (5,409) | (5,067) | $ (5,452) | $ (5,592) |
Accounts Receivable, Net, Current, Total | $ 357,310 | $ 378,397 |
ACCOUNTS RECEIVABLE (SCHEDULE_2
ACCOUNTS RECEIVABLE (SCHEDULE OF CHANGE IN ALLOWANCE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |||
Balance, beginning balance | $ 5,067 | $ 5,452 | $ 5,592 |
Provision for credit losses | (350) | 494 | 1,711 |
Uncollectible receivables written-off | (281) | (880) | (1,311) |
Effect of foreign currency | (15) | 1 | (540) |
Acquisition credit losses | 988 | ||
Balance, ending balance | $ 5,409 | $ 5,067 | $ 5,452 |
ACCOUNTS RECEIVABLE (SIGNIFICAN
ACCOUNTS RECEIVABLE (SIGNIFICANT CLIENTS TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk, Percentage of Revenue from Major Customer | |||
Accounts receivable, net | $ 357,310 | $ 378,397 | |
Revenue | Customer Concentration Risk | Financial Services Client | |||
Concentration Risk, Percentage of Revenue from Major Customer | |||
Concentration risk percentage | 12.00% | 13.00% | 3.00% |
Accounts Receivable | Credit Concentration Risk | Financial Services Client | |||
Concentration Risk, Percentage of Revenue from Major Customer | |||
Accounts receivable, net | $ 15,483 | $ 58,960 | $ 4,321 |
ACCOUNTS RECEIVABLE AND SIGNI_3
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS(NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Revenue Major Customer Line Items | |||
Revenue. | $ 2,273,062 | $ 1,949,248 | $ 1,643,704 |
Customer Concentration Risk | Minimum | |||
Entity Wide Revenue Major Customer Line Items | |||
Revenue. | $ 100,000 | ||
Revenue | Customer Concentration Risk | |||
Entity Wide Revenue Major Customer Line Items | |||
Concentration Risk, Customer | one | no | |
Revenue | Customer Concentration Risk | Financial Services Client | |||
Entity Wide Revenue Major Customer Line Items | |||
Concentration risk percentage | 12.00% | 13.00% | 3.00% |
Receivables Sales Agreement - A
Receivables Sales Agreement - Additional Information (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables Sales Agreement [Line Items] | ||
Factored Accounts Receivable, net | $ 97.7 | $ 71 |
Cash from customers not yet remitted | 22.5 | $ 26.1 |
Proceeds from factored receivables | 100 | |
Maximum | ||
Receivables Sales Agreement [Line Items] | ||
Proceeds from factored receivables | $ 100 |
PROPERTY PLANT AND EQUIPMENT (P
PROPERTY PLANT AND EQUIPMENT (PPE BREAKOUT BY TYPE TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | $ 860,616 | $ 838,306 | $ 801,183 |
Less: Accumulated depreciation and amortization | (692,212) | (659,600) | |
Property, Plant and Equipment, Net, Total | 168,404 | 178,706 | |
Land And Building [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 32,942 | 32,944 | |
Technology Equipment [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 503,056 | 474,415 | |
Equipment [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 50,256 | 51,717 | |
Furniture And Fixtures | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 84,944 | 85,149 | |
Leasehold Improvements | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 189,161 | 193,823 | |
Vehicles [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | $ 257 | $ 258 |
PROPERTY PLANT AND EQUIPMENT (N
PROPERTY PLANT AND EQUIPMENT (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation and amortization expense for property, plant and equipment | $ 63,500 | $ 62,700 | $ 57,500 |
Impairment losses | 11,254 | 5,809 | $ 3,735 |
Property, plant and equipment, net | 168,404 | 178,706 | |
Software Development [Member] | |||
Impairment losses | 3,200 | ||
Property, plant and equipment, net | $ 19,400 | $ 16,200 |
GOODWILL (GOODWILL ROLLFORWARD)
GOODWILL (GOODWILL ROLLFORWARD) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Beginning balance, goodwill | $ 363,502 | $ 301,694 |
Acquisitions / Adjustments Increase (Decrease) | 378,908 | 59,087 |
Effect of Foreign Currency | (2,929) | 2,721 |
Ending balance, goodwill | 739,481 | 363,502 |
TTEC Digital | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 128,211 | 66,275 |
Acquisitions / Adjustments Increase (Decrease) | 378,908 | 59,341 |
Effect of Foreign Currency | (1,897) | 2,595 |
Ending balance, goodwill | 505,222 | 128,211 |
TTEC Engage | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 235,291 | 235,419 |
Acquisitions / Adjustments Increase (Decrease) | 0 | (254) |
Effect of Foreign Currency | (1,032) | 126 |
Ending balance, goodwill | $ 234,259 | $ 235,291 |
GOODWILL (NARRATIVE) (Details)
GOODWILL (NARRATIVE) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Projections [Member] | Minimum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 2.5% |
Revenue Projections [Member] | Maximum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 28.8% |
EBITDA Margin [Member] | Minimum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 11.5% |
EBITDA Margin [Member] | Maximum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 21.1% |
Income Tax Rate [Member] | Minimum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 26.1% |
Income Tax Rate [Member] | Maximum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 26.9% |
Capital Expenditure [Member] | Minimum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | $3.9 |
Capital Expenditure [Member] | Maximum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | $81.3 |
Discount Rate Range [Member] | Minimum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 8.5% |
Discount Rate Range [Member] | Maximum | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Goodwill, Impaired, Method for Fair Value Determination | 12.5% |
OTHER INTANGIBLE ASSETS (SCHEDU
OTHER INTANGIBLE ASSETS (SCHEDULE OF INTANGIBLE ASSETS TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | $ 112,059 | $ 115,596 |
Amortization | (31,969) | (16,186) |
Impairments | (671) | 0 |
Acquisitions and Adjustments | 133,486 | 12,820 |
Effect of Foreign Currency | (556) | (171) |
Ending balance, accumulated amortization of other intangible assets | 212,349 | 112,059 |
Customer Relationships [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | 173,601 | 161,756 |
Amortization | 0 | 0 |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 128,186 | 11,570 |
Effect of Foreign Currency | (1,839) | 275 |
Ending balance, accumulated amortization of other intangible assets | 299,948 | 173,601 |
Customer Relationships Accumulated Amortization [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | (68,769) | (54,653) |
Amortization | (25,440) | (13,640) |
Impairments | (671) | 0 |
Acquisitions and Adjustments | 0 | 0 |
Effect of Foreign Currency | 1,298 | (476) |
Ending balance, accumulated amortization of other intangible assets | (93,582) | (68,769) |
Other Intangible Assets [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | 14,450 | 13,162 |
Amortization | 0 | 0 |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 5,300 | 1,250 |
Effect of Foreign Currency | (19) | 38 |
Ending balance, accumulated amortization of other intangible assets | 19,731 | 14,450 |
Other Intangible Assets Accumulated Amortization [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | (7,223) | (4,669) |
Amortization | (6,529) | (2,546) |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 0 | 0 |
Effect of Foreign Currency | 4 | (8) |
Ending balance, accumulated amortization of other intangible assets | $ (13,748) | $ (7,223) |
OTHER INTANGIBLE ASSETS (FUTURE
OTHER INTANGIBLE ASSETS (FUTURE AMORTIZATION EXPENSE TABLE) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
OTHER INTANGIBLE ASSETS [Abstract] | |
Year 1 | $ 31,147 |
Year 2 | 29,935 |
Year 3 | 27,358 |
Year 4 | 25,324 |
Year 5 | 25,264 |
Thereafter | 73,321 |
Total, finite lived intangible assets | $ 212,349 |
OTHER INTANGIBLE ASSETS (NARRAT
OTHER INTANGIBLE ASSETS (NARRATIVE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Useful Life [Line Items] | ||||
Amortization expense related to intangible assets | $ 31,969 | $ 16,186 | ||
Impairment losses | 11,254 | 5,809 | $ 3,735 | |
rogenSi [Member] | TTEC Digital | ||||
Weighted Average Useful Life [Line Items] | ||||
Amortization expense related to intangible assets | 32,000 | 16,200 | $ 10,500 | |
Impairment losses | $ 2,000 | |||
Customer Relationships [Member] | ||||
Weighted Average Useful Life [Line Items] | ||||
Amortization expense related to intangible assets | $ 0 | 0 | ||
Customer Relationships [Member] | rogenSi [Member] | TTEC Digital | ||||
Weighted Average Useful Life [Line Items] | ||||
Weighted average useful life of intangible assets | 7 years 1 month 6 days | |||
Impairment losses | 400 | |||
Other Intangible Assets [Member] | ||||
Weighted Average Useful Life [Line Items] | ||||
Amortization expense related to intangible assets | $ 0 | $ 0 | ||
Other Intangible Assets [Member] | rogenSi [Member] | TTEC Digital | ||||
Weighted Average Useful Life [Line Items] | ||||
Weighted average useful life of intangible assets | 1 year 3 months 18 days | |||
Intellectual Property [Member] | rogenSi [Member] | TTEC Digital | ||||
Weighted Average Useful Life [Line Items] | ||||
Impairment losses | $ 200 |
DERIVATIVES (OCI ROLLFORWARD) (
DERIVATIVES (OCI ROLLFORWARD) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
DERIVATIVES [ABSTRACT] | |||
Aggregate unrealized net gain/(loss) at beginning of year | $ 8,431 | $ 4,182 | $ (8,278) |
Add: Net gain/(loss) from change in fair value of cash flow hedges | (12,126) | 2,321 | 15,545 |
Less: Net (gain)/loss reclassified to earnings from effective hedges | 3,655 | 1,928 | (3,085) |
Aggregate unrealized net gain/(loss) at end of period | $ (40) | $ 8,431 | $ 4,182 |
DERIVATIVES (NOTIONAL TABLE) (D
DERIVATIVES (NOTIONAL TABLE) (Details) - Foreign Exchange Forward ₱ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021PHP (₱) | Dec. 31, 2021MXN ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020PHP (₱) | Dec. 31, 2020MXN ($) |
Derivative [Line Items] | ||||||||
Notional Amount | $ 234,319 | $ 184,719 | ||||||
CAD | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 9,000 | $ 7,022 | $ 2,450 | 1,853 | ||||
% Maturing in the Next 12 Months | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Contract Maturity Date | Jun. 30, 2022 | |||||||
PHP | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 164,295 | ₱ 8,472,000 | 130,468 | ₱ 6,725,000 | ||||
% Maturing in the Next 12 Months | 51.70% | 51.70% | 51.70% | 51.70% | ||||
Contract Maturity Date | Dec. 31, 2024 | |||||||
MXN | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 63,002 | $ 1,422,500 | $ 52,398 | $ 1,159,500 | ||||
% Maturing in the Next 12 Months | 43.20% | 43.20% | 43.20% | 43.20% | ||||
Contract Maturity Date | Dec. 31, 2024 |
DERIVATIVES (BALANCE SHEET CLAS
DERIVATIVES (BALANCE SHEET CLASSIFICATION) (Details) - Foreign Exchange [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ (62) | $ 11,390 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 2,272 | 6,939 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 611 | 4,528 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (1,527) | (73) |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (1,418) | (4) |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 198 | (15) |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 204 | 103 |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ (6) | $ (118) |
DERIVATIVES (INCOME STATEMENT C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Sales Revenue Services Net | $ 2,273,062 | $ 1,949,248 | $ 1,643,704 |
Other nonoperating income expense | 2,315 | (18,591) | $ 3,902 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in other comprehensive income (loss) - effective portion, net of tax: | 3,655 | 1,928 | |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Reclassification from accumulated other comprehensive income | Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Sales Revenue Services Net | 4,939 | 2,618 | |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other nonoperating income expense | $ 191 | $ 205 |
DERIVATIVES (NARRATIVE) (Detail
DERIVATIVES (NARRATIVE) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 32.9 | $ 35.5 |
FAIR VALUE (DERIVATIVES TABLE)
FAIR VALUE (DERIVATIVES TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | $ (62) | $ 11,390 |
Fair value hedges | 198 | (15) |
Total net derivative asset (liability) | 136 | 11,375 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | (62) | 11,390 |
Fair value hedges | 198 | (15) |
Total net derivative asset (liability) | $ 136 | $ 11,375 |
FAIR VALUE (FAIR VALUE ASSETS A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities [Abstract] | |||
Contingent consideration | $ (9,600) | $ (18,032) | $ (6,134) |
Redeemable noncontrolling interest | (56,316) | (52,976) | $ (48,923) |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Derivative assets, net | 136 | 11,375 | |
Total assets | 136 | 11,375 | |
Liabilities [Abstract] | |||
Deferred compensation plan liability | (30,012) | (23,858) | |
Derivative instruments, net | 0 | ||
Total liabilities | (30,012) | (23,858) | |
Redeemable noncontrolling interest | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Liabilities [Abstract] | |||
Contingent consideration | (9,600) | (18,032) | |
Total liabilities | (9,600) | (18,032) | |
Redeemable noncontrolling interest | $ (56,316) | $ (52,976) |
FAIR VALUE (CONTINGENT CONSIDER
FAIR VALUE (CONTINGENT CONSIDERATION TABLE) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, contingent consideration payable | $ 18,032,000 | $ 6,134,000 |
Acquisitions | 13,721,000 | |
Payments | (9,600,000) | |
Imputed Interest/ Adjustment | 1,168,000 | (1,823,000) |
Ending balance, contingent consideration payable | 9,600,000 | 18,032,000 |
FCR | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, contingent consideration payable | 0 | 6,134,000 |
Imputed Interest/ Adjustment | (6,134,000) | |
Ending balance, contingent consideration payable | 0 | 0 |
VoiceFoundry US | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, contingent consideration payable | 14,085,000 | 0 |
Acquisitions | 10,943,000 | |
Payments | (7,414,000) | |
Imputed Interest/ Adjustment | 743,000 | 3,142,000 |
Ending balance, contingent consideration payable | 7,414,000 | 14,085,000 |
VoiceFoundry ASEAN | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, contingent consideration payable | 3,947,000 | 0 |
Acquisitions | 2,778,000 | |
Payments | (2,186,000) | |
Imputed Interest/ Adjustment | 425,000 | 1,169,000 |
Ending balance, contingent consideration payable | $ 2,186,000 | $ 3,947,000 |
FAIR VALUE (NARRATIVE) (Details
FAIR VALUE (NARRATIVE) (Details) | Dec. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Apr. 30, 2022USD ($) | Apr. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Nov. 04, 2020 | Dec. 31, 2019USD ($) | Oct. 26, 2019USD ($) |
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Line of credit | $ 791,000,000 | $ 791,000,000 | $ 385,000,000 | $ 791,000,000 | $ 385,000,000 | |||||||||||
Average interest rate on annual borrowings | 1.30% | 1.60% | ||||||||||||||
Business Combination Contingent Consideration Liability | 9,600,000 | 9,600,000 | 18,032,000 | $ 9,600,000 | $ 18,032,000 | $ 6,134,000 | ||||||||||
FCR | ||||||||||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Business Combination Contingent Consideration Liability | 0 | 0 | 0 | 0 | 0 | 6,134,000 | $ 10,900,000 | |||||||||
Increase (decrease) in contingent consideration payable | 1,800,000 | $ 1,100,000 | $ 3,300,000 | 1,800,000 | $ 1,100,000 | $ 3,300,000 | ||||||||||
FCR | Discount Rate | ||||||||||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Business combination contingent consideration measurement input | 16.7 | |||||||||||||||
VoiceFoundry US | ||||||||||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Business Combination Contingent Consideration Liability | $ 7,414,000 | 7,414,000 | 14,085,000 | $ 7,414,000 | 14,085,000 | 0 | ||||||||||
Increase (decrease) in contingent consideration payable | $ (7,400,000) | $ (7,400,000) | $ (25,000) | $ (200,000) | $ (500,000) | |||||||||||
VoiceFoundry US | Discount Rate | ||||||||||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Business combination contingent consideration measurement input | 23.1 | 23.1 | 23.1 | |||||||||||||
VoiceFoundry ASEAN | ||||||||||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Business Combination Contingent Consideration Liability | $ 2,186,000 | $ 2,186,000 | 3,947,000 | $ 2,186,000 | $ 3,947,000 | $ 0 | ||||||||||
Increase (decrease) in contingent consideration payable | $ (2,200,000) | $ (2,200,000) | $ (100,000) | $ 100,000 | $ (400,000) | $ 1,200,000 | ||||||||||
VoiceFoundry ASEAN | Discount Rate | ||||||||||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Business combination contingent consideration measurement input | 18.4 | 18.4 | 18.4 | 18.4 | ||||||||||||
VoiceFoundry Acquisitions | ||||||||||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||||||||||
Increase (decrease) in contingent consideration payable | $ 4,300,000 |
INCOME TAXES (SOURCES OF PRE-TA
INCOME TAXES (SOURCES OF PRE-TAX INCOME TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sources of pre-tax accounting income | |||
Domestic | $ 108,160 | $ 129,620 | $ 39,864 |
Foreign | 99,724 | 40,648 | 70,547 |
Income before income taxes | $ 207,884 | $ 170,268 | $ 110,411 |
INCOME TAXES (PROVISION TABLE)
INCOME TAXES (PROVISION TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current provision | |||
Federal current | $ 20,697 | $ 22,763 | $ 5,289 |
State current | 8,006 | 9,871 | 2,826 |
Foreign current | 20,161 | 13,496 | 18,938 |
Total current provision | 48,864 | 46,130 | 27,053 |
Deferred provision (benefit) | |||
Federal deferred | (7,017) | (2,390) | 2,515 |
State deferred | (402) | (254) | 118 |
Foreign deferred | 8,250 | (2,549) | (4,009) |
Deferred Income Tax Expense (Benefit), Total | 831 | (5,193) | (1,376) |
Income Tax Expense (Benefit), Total | $ 49,695 | $ 40,937 | $ 25,677 |
INCOME TAXES (TAX RATE RECONCIL
INCOME TAXES (TAX RATE RECONCILIATION TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective tax rate reconciliation | |||
Income tax per U.S. federal statutory rate (21%, 21%, 21%) | $ 43,655 | $ 35,756 | $ 23,186 |
State income taxes, net of federal deduction | 4,588 | 6,923 | 3,144 |
Change in valuation allowances | 12,567 | 3,903 | 9,832 |
Foreign income taxes at different rates than the U.S. | (1,416) | (783) | (3,356) |
Foreign withholding taxes | (93) | 106 | 600 |
Losses in international markets without tax benefits | (1,656) | (2,651) | |
Nondeductible compensation under Section 162(m) | 1,494 | 656 | 668 |
Taxed related to equity compensation | (4,282) | (587) | (976) |
Liabilities for uncertain tax positions | (790) | 2,882 | 661 |
Permanent difference related to foreign exchange gains | 3,362 | (71) | 36 |
(Income)/losses of foreign branch operations | (187) | (10) | 55 |
Non-taxable earnings of minority interest | (3,085) | (1,964) | (1,294) |
Foreign dividend less foreign tax credits | (1,142) | (1,723) | (1,681) |
Decrease (increase) to deferred tax asset - change in state tax rate | (48) | (2,848) | |
State and federal income tax credits and NOLs | (4,531) | (3,918) | (1,176) |
Foreign earnings taxed currently in U.S. | 1,930 | 1,936 | 2,172 |
Taxes related to prior year filings | (1,192) | (1,718) | (1,643) |
Tax related to acquisition accounting | 1,317 | 978 | |
Other | (1,183) | (64) | (30) |
Income Tax Expense (Benefit), Total | $ 49,695 | $ 40,937 | $ 25,677 |
Effective income tax rate | 23.90% | 24.00% | 23.30% |
INCOME TAXES (DTA AND DTL TABLE
INCOME TAXES (DTA AND DTL TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets, gross | ||||
Accrued workers compensation, deferred compensation and employee benefits | $ 8,441 | $ 8,574 | ||
Allowance for doubtful accounts, insurance and other accruals | 4,767 | 4,463 | ||
Amortization of deferred lease liabilities | 15,816 | 20,352 | ||
Net operating losses | 18,006 | 20,508 | ||
Equity compensation | 2,302 | 1,660 | ||
Customer acquisition and deferred revenue accruals | 20,069 | 6,868 | ||
Federal and state tax credits, net | 2,759 | 2,383 | ||
Unrealized losses on derivatives | 22 | 1,187 | ||
DTA Impairment of equity investment | 4,064 | 4,064 | ||
Partnership investment | 106 | 526 | ||
Other | 5,052 | 5,444 | ||
Total deferred tax assets, gross | 81,404 | 76,029 | ||
Valuation allowances | (29,620) | (18,697) | $ (17,051) | $ (10,867) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 51,784 | 57,332 | ||
Deferred tax liabilities | ||||
Depreciation and amortization | (10,291) | (10,734) | ||
Unrealized gain on derivatives | 0 | (2,959) | ||
Contract acquisition costs | (1,831) | (3,182) | ||
Intangible Assets | (21,202) | (15,880) | ||
DTL Operating lease assets | (12,481) | (16,763) | ||
Other | (184) | (480) | ||
Total deferred tax liabilities | (45,989) | (49,998) | ||
Deferred Tax Assets, Net, Total | $ 5,795 | $ 7,334 |
INCOME TAXES (VALUATION ALLOWAN
INCOME TAXES (VALUATION ALLOWANCE ROLLFORWARD TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES [ABSTRACT] | |||
Beginning balance, deferred income tax valuation allowance | $ 18,697 | $ 17,051 | $ 10,867 |
Additions to Deferred Income Tax Expense | 14,660 | 4,650 | 7,373 |
Reduction of Deferred Income Tax Expense | (3,737) | (3,004) | (1,189) |
Ending balance, deferred income tax valuation allowance | $ 29,620 | $ 18,697 | $ 17,051 |
INCOME TAXES (OPERATING LOSS CA
INCOME TAXES (OPERATING LOSS CARRY FORWARDS TABLE) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
INCOME TAXES [ABSTRACT] | |
2022 | $ 0 |
2023 | 94 |
2024 | 125 |
2025 | 50 |
After 2025 | 8,411 |
No expiration | 9,326 |
Total | $ 18,006 |
INCOME TAXES (UNCERTAIN TAX BEN
INCOME TAXES (UNCERTAIN TAX BENEFITS TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits Rollforward | |||
Beginning balance, unrecognized tax benefits | $ 7,509 | $ 4,784 | $ 4,784 |
Additions for current year tax positions | 220 | 2,725 | 0 |
Reductions in prior year tax positions | (826) | 0 | 0 |
Ending balance, unrecognized tax benefits | $ 6,903 | $ 7,509 | $ 4,784 |
INCOME TAXES (JURISDICTIONS OPE
INCOME TAXES (JURISDICTIONS OPEN TO TAX EXAMINATIONS TABLE) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
United States [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2017 to Present |
Australia [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2017 to Present |
India [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2017 to Present |
Canada [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2017 to Present |
Mexico [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2016 to Present |
Philippines [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2018 to Present |
INCOME TAXES (NARRATIVE) (Detai
INCOME TAXES (NARRATIVE) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement Narrative [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | |
Effective income tax rate | 21.00% | 21.00% | 21.00% | |
Deferred Tax Assets, Net | $ 51,784 | $ 57,332 | ||
Valuation allowances | 29,620 | 18,697 | $ 17,051 | $ 10,867 |
Estimated amount of foreign earnings to be invested outside United States | $ 264,000 | |||
Income Tax Holidays Description | The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements, with an initial period of tax at 0% for four years, which will be fully expired in 2022 and additional periods at a reduced tax rate, expiring at various times beginning in 2030. | |||
Aggregate Effect on Income Tax Expense for Income Tax Holiday Jurisdictions | $ 6,300 | $ 4,400 | $ 8,400 | |
Diluted Net Income Per Share Effect For Income Tax Holiday Jurisdictions | $ 0.13 | $ 0.09 | $ 0.18 | |
Total Interest and Penalties Accrued Related to Uncertain Tax Positions Recorded in Balance Sheets | $ 2,800 | $ 3,000 | $ 2,100 | |
Reserve for Uncertain Tax Benefits, Net | 6,900 | $ 7,500 | ||
Decrease of Unrecognized Tax Benefits over Next 12 Months | 9,800 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,900 | |||
United States [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Deferred Tax Assets, Net | 6,900 | |||
Net Change in Valuation Allowance | $ 4,000 | |||
Income Tax Examination Years Under Audit | 2017 and 2018 | |||
California | ||||
Income Statement Narrative [Line Items] | ||||
Income Tax Examination Years Under Audit | 2017 and 2018 | |||
FLORIDA | Settlement with Taxing Authority [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Income Tax Examination Years Under Audit | 2017 through 2019 | |||
Foreign Jurisdictions [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Deferred Tax Liabilities, Net | $ 1,200 | |||
Canada Turkey UK and Various Jurisdictions [Member] | Not Realizable Standard [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Net Change in Valuation Allowance | (3,700) | |||
Mexico Netherlands Canada and Various Jurisdictions [Member] | Not Realizable Standard [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Net Change in Valuation Allowance | $ 10,600 | |||
Philippines [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Income Tax Examination Years Under Audit | 2017 and 2018 | |||
Philippines and Costa Rica [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Income Tax Holiday Termination Date | 2030 | |||
India [Member] | ||||
Income Statement Narrative [Line Items] | ||||
Income Tax Examination Years Under Audit | 2017 through 2019 |
RESTRUCTURING AND INTEGRATION C
RESTRUCTURING AND INTEGRATION CHARGES AND IMPAIRMENT LOSSES (LIABILITY CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | $ 1,168 | $ 1,064 | $ 1,035 |
Facility exit charges | 2,639 | 2,200 | 712 |
Restructuring charges, net | 3,807 | 3,264 | 1,747 |
TTEC Digital | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | 858 | 668 | 141 |
Facility exit charges | 10 | 90 | 41 |
TTEC Engage | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | 310 | 396 | 894 |
Facility exit charges | $ 2,629 | $ 2,110 | $ 671 |
RESTRUCTURING CHARGES AND IMPAI
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABILITY ROLLFORWARD TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, restructuring reserve | $ 699 | $ 325 |
Expense | 3,891 | 3,264 |
Payments | (3,182) | (2,796) |
Changes due to foreign currency | (5) | (16) |
Change in estimates | (84) | 78 |
Ending balance, restructuring reserve | 1,319 | 699 |
Reduction in Force [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, restructuring reserve | 156 | 251 |
Expense | 1,252 | 1,064 |
Payments | (510) | (1,067) |
Changes due to foreign currency | (6) | (14) |
Change in estimates | (84) | 78 |
Ending balance, restructuring reserve | 808 | 156 |
Closure of Delivery Centers [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, restructuring reserve | 543 | 74 |
Expense | 2,639 | 2,200 |
Payments | (2,672) | (1,729) |
Changes due to foreign currency | 1 | (2) |
Ending balance, restructuring reserve | $ 511 | $ 543 |
RESTRUCTURING AND INTEGRATION_2
RESTRUCTURING AND INTEGRATION CHARGES AND IMPAIRMENT LOSSES (NARRATIVE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reduction in force | $ 1,168 | $ 1,064 | $ 1,035 | |||
Restructuring Reserve, Period Increase (Decrease) | 400 | |||||
Facility exit charges | $ 2,639 | 2,200 | 712 | |||
Impaired Long-Lived Assets Held and Used, Asset Description | During each of the periods presented, the Company evaluated the recoverability of its leasehold improvement assets at certain customer engagement centers. | |||||
Impaired Long-Lived Assets Held and Used, Method for Determining Fair Value | To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. | |||||
Restructuring reserve decrease | ||||||
Restructuring Reserve, Period Increase (Decrease) | $ 700 | |||||
Leasehold Improvements | ||||||
Restructuring impairment losses | 7,400 | 5,800 | 2,700 | |||
TTEC Digital | ||||||
Reduction in force | 858 | 668 | 141 | |||
Facility exit charges | 10 | 90 | 41 | |||
TTEC Engage | ||||||
Reduction in force | 310 | 396 | 894 | |||
Facility exit charges | $ 2,629 | $ 2,110 | $ 671 | |||
Cost of Services | ||||||
Restructuring Reserve, Period Increase (Decrease) | $ 3,000 | |||||
Cost of Services | Restructuring reserve decrease | ||||||
Restructuring Reserve, Period Increase (Decrease) | $ (300) | $ (1,600) |
INDEBTEDNESS (NARRATIVE) (Detai
INDEBTEDNESS (NARRATIVE) (Details) - USD ($) | Nov. 23, 2021 | Mar. 25, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Initiation date of current line of credit agreement | Nov. 23, 2021 | ||||
Line of Credit Facility, Increase (Decrease), Other, Net | $ 300,000,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,500,000,000 | $ 1,200,000,000 | |||
Initial Borrowing Capacity | $ 1,500,000 | ||||
Proceeds from factored receivables | 100,000,000 | ||||
Percentage of receivables factored | $ 25 | ||||
Credit facility interest rate | 1.30% | 1.60% | |||
Line of Credit Facility, Collateral | Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for Eurodollar loans. | ||||
Receivables Held-for-sale, Amount | $ 100,000,000 | ||||
Line of credit | 791,000,000 | $ 385,000,000 | |||
Average daily utilization under credit facility | 797,200,000 | $ 550,900,000 | |||
Remaining borrowing capacity under credit facility | 565,000,000 | ||||
Letters Of Credit Issued Outside Line Of Credit Facility | 300,000 | ||||
Line Of Credit Facility Letters Of Credit Issued | $ 22,600,000 | ||||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||
Credit facility interest rate | 1.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | |||||
Credit facility interest rate | 1.25% | ||||
Avtex | |||||
Line of Credit Facility, Increase (Decrease), Other, Net | $ 500,000,000 | ||||
Minimum | Company's net leverage ratio [Member] | |||||
Credit facility interest rate | 0.00% | ||||
Minimum | Eurodollar [Member] | |||||
Credit facility interest rate | 1.00% | ||||
Maximum | |||||
Proceeds from factored receivables | $ 100,000,000 | ||||
Receivables Held-for-sale, Amount | $ 100,000,000 | ||||
Maximum | Company's net leverage ratio [Member] | |||||
Credit facility interest rate | 0.75% | ||||
Maximum | Eurodollar [Member] | |||||
Credit facility interest rate | 1.75% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (NARRATIVE) (Details) $ in Millions | Dec. 31, 2021USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Letters of credit issued under credit facility | $ 22.6 |
Letters Of Credit Issued Outside Line Of Credit Facility | $ 0.3 |
DEFERRED REVENUE AND COSTS (DEF
DEFERRED REVENUE AND COSTS (DEFERRED REVENUE CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
DEFERRED REVENUE AND COSTS [ABSTRACT] | ||
Deferred revenue - current | $ 95,608 | $ 39,956 |
Deferred revenue - long-term | 17,078 | 17,434 |
Total deferred revenue | $ 112,686 | $ 57,390 |
DEFERRED REVENUE AND COSTS (D_2
DEFERRED REVENUE AND COSTS (DEFERRED COSTS CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
DEFERRED REVENUE AND COSTS [ABSTRACT] | ||
Deferred Costs - Current | $ 49,043 | $ 25,669 |
Deferred Costs - Long-term | 14,406 | 18,015 |
Total Deferred Costs | $ 63,449 | $ 43,684 |
DEFERRED REVENUE (SCHEDULE OF C
DEFERRED REVENUE (SCHEDULE OF CHANGES IN DEFERRED REVENUE) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
DEFERRED REVENUE AND COSTS [ABSTRACT] | |
Deferred Revenue, Beginning Balance | $ 57,390 |
Deferred Revenue, Additions | 297,623 |
Amortization | (242,327) |
Deferred Revenue, Ending Balance | $ 112,686 |
LEASE COST (Details)
LEASE COST (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Cost Table Line Items | ||
Total lease cost | $ 59,243 | $ 64,088 |
Depreciation and Amortization | ||
Lease Cost Table Line Items | ||
Amortization of ROU assets - finance leases | 6,674 | 7,661 |
Interest Expense | ||
Lease Cost Table Line Items | ||
Interest on lease liabilities - finance leases | 136 | 203 |
Cost of Services | ||
Lease Cost Table Line Items | ||
Operating lease cost (cost resulting from lease payments) | 39,087 | 46,375 |
Short-term Lease, Cost | 4,529 | 3,888 |
Variable Lease, Cost | (1,246) | |
Variable Lease, Cost | (287) | |
Selling General And Administrative Expenses [Member] | ||
Lease Cost Table Line Items | ||
Operating lease cost (cost resulting from lease payments) | 2,770 | 2,040 |
Sublease Income | (807) | (836) |
Restructuring | ||
Lease Cost Table Line Items | ||
Operating lease cost (cost resulting from lease payments) | 1,614 | 1,232 |
Impairment | ||
Lease Cost Table Line Items | ||
Operating lease cost (cost resulting from lease payments) | 5,338 | 5,127 |
Other income (expense), net | ||
Lease Cost Table Line Items | ||
Operating lease cost (cost resulting from lease payments) | 1,240 | 1,149 |
Sublease Income | $ (2,584) | $ (2,464) |
LEASES OTHER INFORMATION (Detai
LEASES OTHER INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease - operating cash flows | $ 45 | $ 68 |
Finance lease - financing cash flows | 6,385 | 7,911 |
New ROU assets - operating leases | 15,280 | 6,834 |
Modified ROU assets - operating leases | 736 | 6,485 |
New ROU assets - finance leases | 1,141 | 2,292 |
Fixed payments | ||
Operating Lease, Payments | $ 52,358 | $ 55,862 |
LEASE TERM AND DISCOUNT RATE (D
LEASE TERM AND DISCOUNT RATE (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
LEASES [ABSTRACT] | ||
Finance Lease, Weighted Average Remaining Lease Term | 2 years 4 months 4 days | 2 years 5 months 18 days |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 3 months 27 days | 3 years 8 months 26 days |
Finance Lease, Weighted Average Discount Rate, Percent | 1.85% | 1.64% |
Operating Lease, Weighted Average Discount Rate, Percent | 5.38% | 6.95% |
LEASE ASSETS AND LIABILITIES (D
LEASE ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS. | ||
Operating lease assets | $ 90,180 | $ 120,820 |
Finance lease assets | 7,119 | 12,659 |
Total leased assets | 97,299 | 133,479 |
Current | ||
Operating Lease, Liability, Current | 44,460 | 43,651 |
Finance Lease, Liability, Current | $ 3,001 | $ 6,193 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Non-current | ||
Operating Lease, Liability, Noncurrent | $ 64,419 | $ 98,277 |
Finance Lease, Liability, Noncurrent | $ 2,866 | $ 4,763 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities, noncurrent | Other liabilities, noncurrent |
Total lease liabilities | $ 114,746 | $ 152,884 |
LEASE (FUTURE MINIMUM LEASE PAY
LEASE (FUTURE MINIMUM LEASE PAYMENTS TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Finance Leases - Year 1 | $ 3,026 | $ 6,237 |
Finance Leases - Year 2 | 1,921 | 2,740 |
Finance Leases - Year 3 | 870 | 1,631 |
Finance Leases - Year 4 | 164 | 579 |
Finance Leases - Year 5 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 5,981 | 11,187 |
Less: imputed interest | (114) | (231) |
Total lease liability | $ 5,867 | $ 10,956 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Other liabilities, noncurrent | Other current liabilities, Other liabilities, noncurrent |
Finance Lease, Liability, Payments, Due | $ 5,981 | $ 11,187 |
Operating Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases - Year 1 | 48,559 | 51,120 |
Operating Leases - Year 2 | 32,054 | 46,913 |
Operating Leases - Year 3 | 18,862 | 31,085 |
Operating Leases - Year 4 | 10,162 | 17,338 |
Operating Leases - Year 5 | 3,508 | 8,288 |
Thereafter | 6,759 | 8,397 |
Total minimum lease payments | 119,904 | 163,141 |
Less: Imputed Interest. | (11,025) | (21,213) |
Total lease liability | 108,879 | 141,928 |
Sublease Income [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Sub-lease income - Year 1 | (3,465) | (3,500) |
Sub-lease income - Year 2 | (3,112) | (3,489) |
Sub-lease income - Year 3 | (2,905) | (3,123) |
Sub-lease income - Year 4 | (2,940) | (2,905) |
Sub-lease income - Year 5 | (490) | (2,940) |
Sub-lease income - thereafter | (490) | |
Sublease Income Total | (12,912) | (16,447) |
Sublease Income Total | $ 12,912 | $ 16,447 |
LEASE (NARRATIVE) (Details)
LEASE (NARRATIVE) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true |
Sub-lease A [Member] | |
Lease start date | Jan. 1, 2009 |
Lease Expiration Date | Dec. 31, 2026 |
Sub-lease B [Member] | |
Lease start date | Nov. 6, 2017 |
Lease Expiration Date | May 31, 2021 |
Sub-lease C [Member] | |
Lease start date | Mar. 1, 2019 |
Lease Expiration Date | Jul. 21, 2023 |
Sub-lease D [Member] | |
Lease start date | Feb. 6, 2020 |
Lease Expiration Date | Jun. 14, 2023 |
Minimum | |
Lessee, Operating Lease, Term of Contract | 1 year |
Maximum | |
Lessee, Operating Lease, Term of Contract | 10 years |
OTHER LONG TERM LIABILITIES (De
OTHER LONG TERM LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred revenue - long-term | $ 17,078 | $ 17,434 |
Deferred Compensation Liability, Classified, Noncurrent | 30,012 | 23,858 |
Deferred social security taxes | 15,986 | |
Other Accrued Liabilities, Noncurrent | 32,737 | 38,907 |
Other Liabilities, Noncurrent, Total | $ 79,827 | $ 96,185 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | $ 457,762 | $ 431,730 | $ 352,849 |
Ending balance, value | 538,025 | 457,762 | 431,730 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (72,156) | (106,234) | (124,596) |
Other comprehensive income (loss) before reclassifications | (29,637) | 13,059 | 21,645 |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,367 | 21,019 | (3,283) |
Net current period other comprehensive income (loss) | (26,270) | 34,078 | 18,362 |
Ending balance, value | (98,426) | (72,156) | (106,234) |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (78,139) | (107,480) | (114,168) |
Other comprehensive income (loss) before reclassifications | (17,408) | 9,722 | 6,688 |
Amounts reclassified from accumulated other comprehensive income (loss) | 19,619 | ||
Net current period other comprehensive income (loss) | (17,408) | 29,341 | 6,688 |
Ending balance, value | (95,547) | (78,139) | (107,480) |
Derivative Valuation, Net of Tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | 8,431 | 4,182 | (8,278) |
Other comprehensive income (loss) before reclassifications | (12,126) | 2,321 | 15,545 |
Amounts reclassified from accumulated other comprehensive income (loss) | 3,655 | 1,928 | (3,085) |
Net current period other comprehensive income (loss) | (8,471) | 4,249 | 12,460 |
Ending balance, value | (40) | 8,431 | 4,182 |
Other, Net of Tax. | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (2,448) | (2,936) | (2,150) |
Other comprehensive income (loss) before reclassifications | (103) | 1,016 | (588) |
Amounts reclassified from accumulated other comprehensive income (loss) | (288) | (528) | (198) |
Net current period other comprehensive income (loss) | (391) | 488 | (786) |
Ending balance, value | $ (2,839) | $ (2,448) | $ (2,936) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Presentation of Income Statement Reclassifications [Line Items] | |||
Sales Revenue Services Net | $ 2,273,062 | $ 1,949,248 | $ 1,643,704 |
Benefit from (provision for) income taxes | (49,695) | (40,937) | (25,677) |
Net income | 158,189 | 129,331 | 84,734 |
Accumulated Other Comprehensive Income (Loss) | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | (3,367) | (21,019) | 3,283 |
Foreign Currency Translation Adjustment | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | (19,619) | ||
Tax effect | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Provision for income taxes - Other | 32 | 60 | 23 |
Derivative Valuation, Net of Tax | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | (3,655) | (1,928) | 3,085 |
Cost of Services | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Cost of services | (320) | (588) | (221) |
Reclassification from accumulated other comprehensive income | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | (288) | (528) | (198) |
Reclassification from accumulated other comprehensive income | Tax effect | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Benefit from (provision for) income taxes | (1,284) | (690) | 1,143 |
Reclassification from accumulated other comprehensive income | Derivative Valuation, Net of Tax | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net income | 3,655 | 1,928 | (3,085) |
Foreign Exchange Forward | Reclassification from accumulated other comprehensive income | Foreign Currency Translation Adjustment | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Sales Revenue Services Net | $ 4,939 | $ 2,618 | $ (4,228) |
WEIGHTED AVERAGE SHARE COUNTS_2
WEIGHTED AVERAGE SHARE COUNTS (DILUTED SHARES TABLE) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Shares used in basic earnings per share calculation | 46,890 | 46,647 | 46,373 |
Effect of dilutive securities: | |||
Restricted stock units | 468 | 318 | 349 |
Performance-based restricted stock units | 28 | 28 | 36 |
Total effects of dilutive securities | 496 | 346 | 385 |
Shares used in dilutive earnings per share calculation | 47,386 | 46,993 | 46,758 |
WEIGHTED AVERAGE SHARE COUNTS_3
WEIGHTED AVERAGE SHARE COUNTS (NARRATIVE) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock Units (RSUs) [Member] | |||
Anti-dilutive options to purchase common stock [Line Items] | |||
Anti-dilutive securities | 124 | 8 | 28 |
EMPLOYEE COMPENSATION PLANS (RS
EMPLOYEE COMPENSATION PLANS (RSU ROLLFORWARD TABLE) (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
RSU Rollforward by Shares | |
Unvested as of beginning of period, shares | shares | 1,029,176 |
Granted, shares | shares | 325,078 |
Vested, shares | shares | (367,597) |
Cancellations/expirations, shares | shares | (101,045) |
Unvested as of end of period, shares | shares | 885,612 |
RSU Rollforward by Weighted Average Grant Date Fair Value | |
Unvested as of beginning of period, weighted average grant date fair value | $ / shares | $ 41.12 |
Granted, weighted average grant date fair value | $ / shares | 96.47 |
Vested, weighted average grant date fair value | $ / shares | 38.57 |
Cancellations/expirations, weighted average grant date fair value | $ / shares | 47.87 |
Unvested as of end of period, weighted average grant date fair value | $ / shares | $ 61.73 |
EMPLOYEE COMPENSATION PLANS (NA
EMPLOYEE COMPENSATION PLANS (NARRATIVE) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 75.00% | |||
Company Match on US Defined Contribution Plans | $ 10,800 | $ 4,200 | $ 6,700 | |
Share-based Compensation Award Vesting Period | 1 year | |||
Equity-based compensation expense | $ 16,425 | 12,507 | 12,814 | |
Total Tax Benefit Recognized for Equity-Based Compensation Expense | $ 8,700 | 3,500 | 4,200 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value | $ 96.47 | |||
Intrinsic Value of Non-Vested RSUs | $ 80,200 | |||
2019 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | During 2019, the Company awarded performance restricted stock units (“PRSUs”) that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $0.4 million and $1.4 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The award amounts are based on the Company’s annual adjusted operating income for the fiscal years 2019, 2020 and 2021. Each fiscal year’s adjusted operating income will determine the award amount. | |||
2021 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | During 2021, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $1.2 million and $4.9 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded are based on the Company's annual revenue and adjusted operating income for the fiscal year 2023. Fiscal year's 2023 revenue and adjusted operating income will determine the award amount. Expense for these awards will begin at the start of the requisite service period, beginning January 1, 2023. | |||
2020 Plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Shares Available for Issuance under Current Equity Compensation Plan | 4 | |||
Cost of Services | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 6,100 | 4,300 | 4,700 | |
Selling General And Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 10,300 | $ 8,200 | $ 8,100 | |
Minimum | 2020 Plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Award Vesting Period | 3 years | |||
Maximum | 2020 Plan [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Award Vesting Period | 5 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Unrecognized Compensation Expense | $ 37,300 | |||
Requisite Service Period | 1 year 7 months 6 days | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value | $ 96.47 | $ 44.70 | $ 40.10 | |
Intrinsic Value of RSUs Vested | $ 14,200 | $ 11,500 | $ 12,500 | |
Performance Shares [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 1,100 | 1,100 | ||
Performance Shares [Member] | 2020 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | During 2020, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $0.2 million and $2.0 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded are based on the Company’s annual revenue and adjusted operating income for the fiscal years 2021 and 2022. Each fiscal year’s revenue and adjusted operating income will determine the award amount. The Company recognized compensation expense related to PRSUs of $1.6 million for the year ended December 31, 2021. | |||
Performance Shares [Member] | Minimum | 2019 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 400 | |||
Performance Shares [Member] | Minimum | 2020 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 200 | |||
Performance Shares [Member] | Minimum | 2021 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 1,200 | |||
Performance Shares [Member] | Maximum | 2019 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 1,400 | |||
Performance Shares [Member] | Maximum | 2020 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 2,000 | |||
Performance Shares [Member] | Maximum | 2021 PRSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 4,900 |
STOCK REPURCHASE PROGRAM (NARRA
STOCK REPURCHASE PROGRAM (NARRATIVE) (Details) shares in Millions, $ in Millions | 242 Months Ended |
Dec. 31, 2021USD ($)shares | |
STOCK REPURCHASE PROGRAM [ABSTRACT] | |
Cumulative Authorized Share Repurchase Allowance | $ 762.3 |
Treasury Stock Purchases, Shares | shares | 46.1 |
Cost of Treasury Stock Purchases | $ 735.8 |
Remaining Allowance Stock Repurchase Program | $ 26.6 |
Purchases of common stock, share | shares | 46.1 |
Purchases of common stock, value | $ 735.8 |
RELATED PARTY TRANSACTIONS (NAR
RELATED PARTY TRANSACTIONS (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction Line Items | |||
Sales Revenue Services Net | $ 2,273,062 | $ 1,949,248 | $ 1,643,704 |
Airmax [Member] | |||
Related Party Transaction Line Items | |||
Purchases from Related Party | 600 | 400 | 1,100 |
Accounts Payable Due from Related Party | 50 | ||
Welltok | |||
Related Party Transaction Line Items | |||
Sales Revenue Services Net | 1,500 | $ 3,000 | $ 5,300 |
Unisys [Member] | |||
Related Party Transaction Line Items | |||
Sales Revenue Services Net | $ 400 |